CoPS/IMPACT Working Paper Number O-15

Title: Separability and Substitutability in Australian Manufacturing

Author: Vern Caddy

Abstract

This 1978 paper is about modelling production input demands for the ORANI model. It examines a nested production structure where capital and labour are combined to form "value-added", which is in turn combined with a materials aggregate to form output. The nested production structure is contrasted with a more general translog form. Using trans-log, own-and cross-price elasticities are estimated. The elasticity matrix does not show the patterns implied by the nesting hypothesis which is therefore rejected.

Please note: The PDF download of this fairly old paper is an optical scan of indifferent, but legible, quality

JEL Classification: J23, D24, C20.

Keywords: Separability, production functions.

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