Виробнича функція з постійною еластичністю заміщення ресурсів

Volodymyr Yankovyi

doi:10.33987/vsed.3(58).2015.228-234

Authors

Volodymyr Yankovyi Odessa National Economic University, Ukraine

DOI:

https://doi.org/10.33987/vsed.3(58).2015.228-234

Keywords:

CES-function, optimization, capital-labor ratio, marginal rate, substitution of the resources

Abstract

The advantages of the production function with constant elasticity of substitution of resources (CES-function) and the possibility of its use in economic calculations are investigated in the article. The most important economic and mathematical parameters of CES-function and software its unknown factors evaluation are discussed. The optimal capital-maximizing output is determined. It is shown that in this case the marginal rate of substitution of resources equals to one. A new interpretation of it as an indicator of imbalances when investing in aggregate factors «capital» and «labor» is proposed. Deduced marginal rate of substitution of resources based on the optimal capital-labor ratio can be used as an important additional feature when applying the production function in the analysis output in the enterprises of Ukraine.

Author Biography

Volodymyr Yankovyi, Odessa National Economic University

PhD in Economics, Associate Professor, Department of Economics and Management of National Economy

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