Econometrica: May 1970, Volume 38, Issue 3
A Microeconomic Production Function
David Levhari, Eytan SheshinskiMachines produce a constant flow of output when operating, and break down in a random process. The task of workers is to repair the broken machines. Servicing time is also a random process . The limiting steady state probabilities and the relation between output and inputs are derived, and fitted to a Cobb-Douglas production function.
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