@article{9abf70656f2b40b8b0b0333bde2a7825,
title = "Input substitution, aggregation, and engineering descriptions of production activities",
abstract = "This paper presents experimental evidence on the effects of aggregation over micro units on the Allen partial elasticities of substitution between factor inputs. In contrast to all past work on aggregation, the micro technologies are described with engineering, process analysis models.",
author = "Kopp, {Raymond J.} and Smith, {V. Kerry}",
note = "Funding Information: * This research was partially supported by grants from the Mellon Foundation to Resources for the Future and from the National Science Foundation (Grant no. DAR-7921805). Thanks are due the members of the editorial board of Economics Letters for comments on an earlier draft of this paper. 1 A few examples of the theoretical work include Levhari (1968), Sato (1975), Johansen (1972), and Cornwall (1973). The experimental work in this area was not directly addressed to this issue, but does provide indirect evidence and is primarily in Fisher, Solow, and Kearl(l977). 2 The impetus on interpreting neoclassical cost and profit function as approximation has not beeri because of a recognition of an engineering framework as the most reasonable description of the production technology. Nonetheless, the methods proposed for testing and interpreta-tion of parameter estimates are consistent with the approach we are suggesting. See Denny and Fuss (197 7) and Blackoiby et al. (197 7) for discussion of these approximation arguments. Copyright: Copyright 2014 Elsevier B.V., All rights reserved.",
year = "1980",
doi = "10.1016/0165-1765(80)90119-6",
language = "English (US)",
volume = "5",
pages = "289--296",
journal = "Economics Letters",
issn = "0165-1765",
publisher = "Elsevier",
number = "4",
}