A Note on Separability of the Profit Function

Abstract

Based on the concept of translation elasticity we restate in this note the Fare and Grosskopf’s [1] conditions for additive separability of the profit function. We show that for the profit function to be additively separable, the technology must satisfy both simultaneous input-and-output translation homotheticity and graph translation homotheticity.

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Färe, R. and Karagiannis, G. (2014) A Note on Separability of the Profit Function. Theoretical Economics Letters, 4, 702-704. doi: 10.4236/tel.2014.48089.

Conflicts of Interest

The authors declare no conflicts of interest.

References

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