Re: Article on Aggregate Production Functions

In article <ne2k519slhrepc95e213ttiit3ekftsq2c@xxxxxxx>, JT
<jimt2@xxxxxxxxxxxxxxxxx> wrote:

> On Sat, 09 Apr 2005 21:01:30 -0400, Robert Vienneau
> <rvien@xxxxxxxxxxx> wrote:

> >In article <vc5b51praku4ospi0dsunbq204p1bfujpq@xxxxxxx>, JT
> ><jimt@xxxxxxxxxxxxxxxxxxxxxxxxx> wrote:

> >> And would these kind of functions be
> >> realistic, in a technical sense? How much substitutability is
> >> possible between identifiable physical inputs? Most "substitution"
> >> stories that I can think of involve different inputs...e.g. digging
> >> holes with shovels versus an excavator.

> >But anyways, see:
> >
> > <http://www.dreamscape.com/rvien/Economics/Essays/OnGaregnani1970.pdf>
> >
> >All relations graphed there are "smooth".

> I had a quick read through the paper. I am curious about one thing:
> why do you use a four period lifecycle model (versus say a two period
> or three period version)? I thought maybe you needed this to generate
> a saving schedule that would give you multiple saving-investment
> equilibria, but I'm not clear on this.

It's more a matter of getting any equilibrium, multiple or not, in
an overlapping generations framework. One has to enough savings
accumulated at any time to match the value of investment. There are
other ways to close the model.

> From an expositional point of
> view, it seems like a modeling choice that reqires a little
> justification, at least in a footnote.

I wrote that essay up more as notes to myself.

> > ...I know, you see no need to
> > defend Witte or Weatherby.

> I don't even know who they even are...

My belief is that most North American mainstream economists do
not learn correctly the implications of price theory. The
empirical evidence on Usenet goes along with your experiences
in supporting this belief.

--
Mostly economics: <http://www.dreamscape.com/rvien/#PublicationsForFun>
r c
v s a Whether strength of body or of mind, or wisdom, or
i m p virtue, are found in proportion to the power or wealth
e a e of a man is a question fit perhaps to be discussed by
n e . slaves in the hearing of their masters, but highly
@ r c m unbecoming to reasonable and free men in search of
d o the truth. -- Rousseau
.

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