Non-Monotonic C(R) Relations in the Absence of Complementarity
12 Pages Posted: 23 Dec 2002
Abstract
In both 1976 and 1987 Tatsuo Hatta showed that consumption reversal (dc/dr > 0) can occur in a three-period Wicksellian model of production only if the first and the third labour inputs are Hicksian complements. (This was also generalized to n labour inputs.) Unfortunately, he drew the bold conclusion that consumption reversal is merely one more complication introduced by input complementarity. It is shown here that the specific formal result does not generalize and that the bold claim cannot be sustained.
Suggested Citation: Suggested Citation
Steedman, Ian, Non-Monotonic C(R) Relations in the Absence of Complementarity. Available at SSRN: https://ssrn.com/abstract=309317
Do you have a job opening that you would like to promote on SSRN?
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.