Input Price-Input Quantity Relations and the Numéraire

Posted: 31 Aug 2009

See all articles by Arrigo Opocher

Arrigo Opocher

Universita degli Studi di Padova

Ian Steedman

Manchester Metropolitan University - Department of Economics

Date Written: September 2009

Abstract

The fact that a competitive agent faces ‘given’ input prices does not necessarily mean that these prices can be completely arbitrary, especially in the long run. An obvious case, but not the only one, is when there are input-output relations among industries. But as soon as long-run input price interrelatedness is taken seriously, the very conception of a downward sloping input demand curve encounters serious difficulties. Although one can always draw an input price-input quantity relation, its main qualitative property-the sign of its slope-is not generally independent of the arbitrary choice of numéraire.

Keywords: Input demand, Long run, Input prices

JEL Classification: D21, D24, D57

Suggested Citation

Opocher, Arrigo and Steedman, Ian, Input Price-Input Quantity Relations and the Numéraire (September 2009). Cambridge Journal of Economics, Vol. 33, Issue 5, pp. 937-948, 2009, Available at SSRN: https://ssrn.com/abstract=1463177 or http://dx.doi.org/10.1093/cje/bep005

Arrigo Opocher (Contact Author)

Universita degli Studi di Padova ( email )

Via 8 Febbraio, 2
Padova, Vicenza 35122
Italy

Ian Steedman

Manchester Metropolitan University - Department of Economics ( email )

Mabel Tylecote Building
Cavendish Street
Manchester, M15 6BG
United Kingdom

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