Dimensional Analysis of Production and Utility Functions in Economics
4 Pages Posted: 8 Jan 2015
Date Written: January 6, 2015
This paper explores dimensional analysis of production and utility functions in economics. As raised by Barnett, dimensional analysis is important in consistency checks of economics functions. However, unlike Barnett's dismissal of CES and Cobb-Douglas production functions, we will demonstrate that under constant return-to-scale and other assumptions, production function can indeed be justified dimensionally. And then we consider utility functions.
Keywords: dimensional analysis, production function, utility function, consistency in economics
JEL Classification: B41, C00, E10
Suggested Citation: Suggested Citation