Visualizing the Effects of Parameter Perturbations in Models of Joint Production

Abstract

This article illustrates the analysis of prices of production with joint production by a numerical example. The example is used to illustrate the applicability of techniques to identify and visualize qualitative changes in the choice of technique with parameter perturbations. Patterns of switch points are knife-edge or fluke cases in which any perturbation of parameters results in such a qualitative change. This article identifies a new case, called a pattern for requirements for use, in which prices are indeterminate. If the proportions specified by requirements for use are varied at all, this indeterminancy vanishes.

Keywords: Cambridge Capital Controversy, Joint Production

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