Dimensional Analysis of Production and Utility Functions in Economics

4 Pages Posted: 8 Jan 2015

Date Written: January 6, 2015

Abstract

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

Kim, Bryce, Dimensional Analysis of Production and Utility Functions in Economics (January 6, 2015). Available at SSRN: https://ssrn.com/abstract=2546194 or http://dx.doi.org/10.2139/ssrn.2546194

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