TITLE:
A Note on Separability of the Profit Function
AUTHORS:
Rolf Färe, Giannis Karagiannis
KEYWORDS:
Separability, Profit Function, Directional Distance Function, Graph Translation Homotheticity, Simultaneous Input-and-Output Translation Homotheticity
JOURNAL NAME:
Theoretical Economics Letters,
Vol.4 No.8,
October
23,
2014
ABSTRACT: Based on the
concept of translation elasticity we restate in this note theFare and Grosskopf’s [1] conditions for additive separability of the
profit function. We show that for the profit function to be additively
separable, the technology must satisfy both simultaneous input-and-output translation
homotheticity and graph translation homotheticity.