RECONSIDERING THE PARAMETERS OF CONSTANT ELASTICITY OF SUBSTITUTION PRODUCTION FUNCTION

Öz

This study investigates the properties of constant elasticity of substitution production function. Solving the differential equation which defines elasticity of substitution, this study exactly defines the model parameters of production function. In the literature, in previous variant models, those parameters have been widely accepted as free variables. However, this paper demonstrates that the distribution of production factors and technology (efficiency) parameters are not arbitrarily free constants, but are indeed functions of elasticity of substitution and moreover they determine the limiting behavior of factor productivities. This finding contributes to the literature by reconsidering and revising the relationship between model parameters, factor productivities and rate of growth for output of the economy. The results of this study suggest that the economic implications of limiting behavior of factor productivities are deeper than previously considered. This gives more room to designing alternative growth-enhancing policies across the world.

Anahtar Kelimeler

• production function
• constant elasticity of substitution
• growth rate of output per capita

SABİT İKAME ESNEKLİĞİ ÜRETİM FONKSİYONUNUN PARAMETRELERİNİN YENİDEN DEĞERLENDİRİLMESİ

Öz

Bu çalışmamız sabit ikame esnekliği üretim fonksiyonunun özelliklerini incelemektedir. Sabit ikame esnekliğini tanımlayan diferansiyel denklemin çözülmesiyle, bu çalışmada üretim fonksiyonuna ait yapısal değişkenler tam olarak elde edilmektedir. Literatürde ve daha önce modellenmiş sabit ikame esnekliği üretim fonksiyonlarında bu parametrelerin serbest olduğu varsayılmaktaydı. Hâlbuki bu çalışma üretim faktörlerinin dağılımı ve verimlilik parametrelerinin gelişigüzel sabitler olmadığını, ikame esnekliğinin birer fonksiyonu olduklarını ispat etmektedir. Ayrıca, bu iki değişken böylelikle, faktör üretkenliğinin sınır değer davranışlarını da açıklamaktadır. Bu bulgu, model parametreleri, faktör üretkenliği ve ekonomik büyüme hızı arasındaki ilişkinin tekrar ele alınması açısından literatüre katkı sunmaktadır. Bu çalışmanın sonuçları ek olarak faktör üretkenliklerinin sınır koşullardaki davranışını bilmenin daha zengin ekonomi-politik uygulamalara imkân tanıdığını göstermektedir. Böylelikle politika yapıcılar açısından, ekonomik büyüme hızını artırmayı hedefleyen alternatif politikalara alan açılmaktadır.

Anahtar Kelimeler

• Üretim fonskiyonu
• Sabit ikame esnekliği
• Kişi başı üretim büyüme hızı
• Üretim faktörleri

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