EVOLUTION OF THOUGHT FOR PRODUCTION FUNCTION: FROM CLASSICAL ECONOMICS TO NON-PARAMETRIC FUNCTIONS

Abstract

This paper tackles the evolution of thought regarding the production theory from classical to neoclassical era, reaching to its modern techniques in DEA (Data Envelopment Analysis). David Ricardo, with its seminal book, “On the Principles of Political Economy”, is a great example depicting the classical chain of thought of his time, while the famous Cobb-Douglas Function highlights the shift in economical thinking from “average” to “marginal” and from “macro to “micro” and from “labor focused” to “capital & labor”. Based on the footsteps of the neoclassical assumptions, Nonparametric approaches such as DEA evolve on the concept of producing a certain output level from the given input bundle, and derive their frontier from the given data with the defined technology. DEA literature on undesirable outputs extends by introducing solutions to well known issues, such as the relaxation of the “free-disposability” for certain outputs, along with the differentiation between weak and strong disposability, asymmetric treatment of bad and good outputs, and the use of shadow prices.

Keywords

• Classic Economics,Neoclassical Economics,Cobb-Douglas,DEA

KLASİK İKTİSATTAN NON-PARAMETRIK FONKİYONLARA, ÜRETİM FONKİYONUNA DAİR İKTİSADİ DÜŞÜNCENİN EVRİMİ

Abstract

Bu makale, klasik iktisadi çagdan neo-klasik çağa, oradan da DEA (Veri Zarflama Analizi) gibi günümüzün modern non-parametrik tekniklerine uzanacak şekilde üretim fonksiyonunun ekonmik düşünce bazındaki evrimini ele almaktadır. David Ricardo, “On the Principles of Political Economy” adlı özgün çalışmasıyla, klasik iktisadi düşünce yapısını özetlerken, ünlü Cobb-Douglas Fonksiyonu, iktisadi anlayıştaki “ortalama”dan “marjinal”e, “makro”dan “mikro”ya, “emek”ten “emek ve sermaye”ye geçişi betimlemektedir. Neoklasik temeller üzerine bina edilen, DEA gibi non-parametrik yaklaşımlar, mevcut girdi sepeti ile belli bir çıktı seviyesi elde etmek ve eldeki veriler ile mevcut teknolojiye göre üretim sınırlarını türetmek üzere geliştirilmişlerdir. İstenmeyen çıktıları da içine alacak şekilde gelişen DEA literaturü, belli çıktılar için serbest atılabilirlik (free-disposability) varsayımının kaldırılabilmesi, hatta zayıf ve güçlü atılabilirlik (weak-strong disposability) kavramları ayrımı, kötü ve iyi çıktıların asimetrik ele alınması ve gölge fiyatların kullanımı ile bilinen birçok soruna çözüm bulmuştur.

Keywords

• Klasik İktisat,Neoklasik İktisat,Cobb-Douglas,DEA

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