TITLE:
A New Class of Production Function
AUTHORS:
D. Bayanjargal, B. Yerkyebulan, Ts. Battsukh
KEYWORDS:
Euler’s Theorem, Quasi-Homogeneous, Production Function
JOURNAL NAME:
Theoretical Economics Letters,
Vol.10 No.2,
April
23,
2020
ABSTRACT: In
this article, we propose a new class of production functions in the new classical
theory of economics and study its qualities based on Euler’s relation of
quasi-homogeneous functions. In a market economy environment, it is crucial to
establish a firm’s
profitability and draw conclusions about the operation and to make a variety of
assumptions using a function that is more consistent with reality in the
future. We showed that the quasi-homogeneous function is a general form of the
well known production functions such as Cobb-Douglas and Constant Elasticity of
Substitution (CES). We have made some qualitative and quantitative analysis and
compare our results with the classical models using statistical data of Japan.