Aggregating Capacity-Limiting Separable Inputs

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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Year of publication:	2002
Authors:	Li, Sung Ko
Published in:	Southern Economic Journal. - Southern Economic Association - SEA. - Vol. 69.2002, 2, p. 470-478
Publisher:	Southern Economic Association - SEA

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005562150