Continuous Switching of Techniques in Linear Production Models

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Abstract

In linear production models, a switching of technique consists, in general, of a discontinuous variation of a plurality of technical coefficients and of the capital/labor ratio. This result has often been claimed to hold only with discrete technologies; when techniques crowd indefinitely along the wage-profit frontier this approximates to traditional smooth behavior. This conjecture is disproved in this article: in general, technical coefficients and the capital/labor ratio vary discontinuously, either with a discrete or with a continuum spectrum of techniques along the wage-profit frontier.
Original languageEnglish
Pages (from-to)185-201
Number of pages17
JournalManchester School of Economic and Social Studies
Publication statusPublished - 1993

Keywords

  • capital theory
  • continuum of techniques
  • critique of neoclassical analysis
  • production theory
  • reswitching of techniques

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