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Ngo Van Long and Frank Stähler
''The economics of production planning''
( 2018, Vol. 38 No.2 )
This note scrutinizes the role of share parameters in CES production functions. It shows that a firm, when planning production or selecting a production process, aims at maximizing one share parameter at the expense of another in a CES environment. Interior solutions can exist only if factor prices are uncertain to begin with.
Keywords: Production plan, production functions, CES, Cobb-Douglas
JEL: D2 - Production and Organizations: General
D8 - Information, Knowledge, and Uncertainty: General
Manuscript Received : Feb 05 2018 Manuscript Accepted : Apr 15 2018

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