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| A Temporal Path |
I have a new working paper.
Abstract: This article illustrates the analysis of prices of production with joint production by a numerical example. The example is used to illustrate the applicability of techniques to identify and visualize qualitative changes in the choice of technique with parameter perturbations. Patterns of switch points are knife-edge or fluke cases in which any perturbation of parameters results in such a qualitative change. This article identifies a new case, called a pattern for requirements for use, in which prices are indeterminate. If the proportions specified by requirements for use are varied at all, this indeterminancy vanishes.
I need more examples of flukes in models of pure joint production.
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3 comments:
I find this pattern for requirements of use motivating. Instead of focusing in the indeterminacy of prices of production one could talk about an indeterminacy of markups on the rate of profit. It would be interesting to study more closely this pattern where for all feasible rates of profits within the extremes this indeterminacy happens. But above that a complete bouleversement is the possibility of obtaining a case where the average and the maximal rate of profit for a given wage rate (not 0) coincide. Maybe with the same vector of prices.
I am not sure I fully understand this. In my exploration of joint production, I plan on first perturbing coefficients of production. But markups could differ between industries, as I have been exploring in single production.
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