Reswitching: Extending a Famous Example

21 Pages Posted: 20 Mar 2018

Date Written: March 15, 2018

Abstract

In certain models of commodities produced by means of commodities, the choice of technique is analyzed by the construction of the wage frontier. This article presents a numeric example of a continuum of wage curves tangent at a switch point. Technological progress leads to the recurrence of techniques. No switch points then exist, but the cost-minimizing technique varies continuously along the wage frontier. Further progress leads to the disappearance of the recurrence of techniques and, eventually, a single technique becoming cost-minimizing for all feasible rates of profits.

Keywords: Choice of technique, structural dynamics, switch points, technological change

JEL Classification: B51, C67, D24, D46, O33

Suggested Citation

Vienneau, Robert L., Reswitching: Extending a Famous Example (March 15, 2018). Available at SSRN: https://ssrn.com/abstract=3141364 or http://dx.doi.org/10.2139/ssrn.3141364

Robert L. Vienneau (Contact Author)

Independent ( email )

209 Maple Street
Rome, NY 13440
315-336-5417 (Phone)
315-334-4964 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
11
Abstract Views
122
PlumX Metrics