THE AGGREGATE PRODUCTION FUNCTION: A CONSIDERATION OF SOME EXISTENTIAL PROBLEMS
Contenido principal del artículo
Resumen
ABSTRACT
The concept of the aggregate production function, together with it supposedly being a test of the neoclassical marginal product theory of distribution, is now central to much of neoclassical macroeconomic theory. Severe criticisms of this concept that include the Cambridge Capital Theory Controversies and the aggregation problem are now simply ignored. The reason is that estimates of the Cobb-Douglas and the Constant Elasticity of Substitution (CES) production functions, inter alia, give good statistical fits with the estimated output elasticities being often close to their factor shares. However, the reason for this is that in both cases all that is being estimated is merely the mathematical transformation of an accounting identity. As such, it has no economic implications and, in particular, says nothing about “the laws of production”. This analysis considers this criticism of the aggregate production function. In particular, it revisits and extends the criticisms made of Solow’s (1957) model of technical change and the use of the aggregate production function. It is shown that Solow’s (1974; 1987) defence of the aggregate production function is not convincing. The CES production function is also shown to be simply a transformation of the accounting identity and, consequently, also has no economic implications.
LA FUNCIÓN DE PRODUCCIÓN AGREGADA: UNA CONSIDERACIÓN DE ALGUNOS PROBLEMAS EXISTENCIALES
RESUMEN
El concepto de la función de producción agregada, junto con el supuesto de que se trata de una prueba de la teoría de la distribución del producto marginal neoclásica, ahora es fundamental para gran parte de la teoría macroeconómica neoclásica. Las severas críticas a este concepto, que incluyen las controversias de la teoría del capital de Cambridge y el problema de agregación, hoy día simplemente son ignoradas. La razón es que las estimaciones de las funciones de producción Cobb-Douglas y la elasticidad constante de sustitución (ECS), inter alia, dan buenos resultados estadísticos en los que las elasticidades producto estimadas con frecuencia se aproximan a las participaciones de los factores. Sin embargo, la razón de esto es que en ambos casos todo lo que se está estimando es meramente la transformación matemática de una identidad contable. En tal sentido, no tiene ninguna implicación económica y, en particular, no dice nada acerca de “las leyes de la producción”. El presente análisis considera esta crítica de la función de producción agregada. En particular, revisa de nuevo y extiende las críticas hechas al modelo de Solow (1957) del cambio técnico y el uso de la función de producción. Se demuestra que la defensa de Solow (1974; 1987) de la función de producción agregada no es convincente. Se demuestra también que la función de producción ECS es una simple transformación de la identidad contable y, en consecuencia, no tiene ninguna implicación económica.
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