Aggregating capacity-limiting separable inputs

Sung Ko Li

doi:10.2307/1061684

Aggregating capacity-limiting separable inputs

Sung Ko Li^*

^*Corresponding author for this work

Research output: Contribution to journal › Journal article › peer-review

3 Citations (Scopus)

Abstract

The concept of separability is closely related to aggregation. Previous studies on separability are important mainly for theoretical contributions, not for empirical results. This paper provides a theoretical justification for using the maximum capacity of a subset of inputs as an aggregate index in empirical settings. The method is demonstrated with two examples, aggregating inputs within a firm and across firms.

Original language	English
Pages (from-to)	470-478
Number of pages	9
Journal	Southern Economic Journal
Volume	69
Issue number	2
DOIs	https://doi.org/10.2307/1061684 https://doi.org/10.1002/j.2325-8012.2002.tb00504.x
Publication status	Published - Oct 2002

Scopus Subject Areas

Economics and Econometrics

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title = "Aggregating capacity-limiting separable inputs",

abstract = "The concept of separability is closely related to aggregation. Previous studies on separability are important mainly for theoretical contributions, not for empirical results. This paper provides a theoretical justification for using the maximum capacity of a subset of inputs as an aggregate index in empirical settings. The method is demonstrated with two examples, aggregating inputs within a firm and across firms.",

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AB - The concept of separability is closely related to aggregation. Previous studies on separability are important mainly for theoretical contributions, not for empirical results. This paper provides a theoretical justification for using the maximum capacity of a subset of inputs as an aggregate index in empirical settings. The method is demonstrated with two examples, aggregating inputs within a firm and across firms.

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Aggregating capacity-limiting separable inputs

Abstract

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