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On the restrictiveness of separability : the significance of energy in German manufacturing

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dc.creator Frondel, Manuel
dc.creator Schmidt, Christoph M.
dc.date 2006
dc.date.accessioned 2013-10-16T07:00:39Z
dc.date.available 2013-10-16T07:00:39Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/18589
dc.identifier ppn:51032231X
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/18589
dc.description Any researcher would certainly agree with Hamermesh?s (1993:34) intuition about separability that the ease of substitution between any two production factors should be unaffected by a third factor that is separable from the others. This paper emphasizes that such a notion of separability needs to be more restrictive than the classical separability concept is.We thus coin the notion of strict separability that implies the classical concept. By applying both separability concepts in a translog approach to German manufacturing data (1978?1990), we focus on the empirical question of whether the omission of energy affects the conclusions about the ease of substitution among nonenergy factors. We find ample empirical evidence to doubt the assumption that energy is separable from all other production factors even in the relatively mild form of classical separability. At least under separability aspects, therefore, energy appears to be an indispensable production factor.
dc.language eng
dc.publisher
dc.relation RWI Discussion Papers 38
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject C3
dc.subject D2
dc.subject ddc:330
dc.subject Substitution
dc.subject Translog Cost Functions
dc.title On the restrictiveness of separability : the significance of energy in German manufacturing
dc.type doc-type:workingPaper


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