EconStor >
Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI), Essen >
RWI Discussion Papers >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/18589
  
Title:On the restrictiveness of separability : the significance of energy in German manufacturing PDF Logo
Authors:Frondel, Manuel
Schmidt, Christoph M.
Issue Date:2006
Series/Report no.:RWI Discussion Papers 38
Abstract: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.
Subjects:Substitution
Translog Cost Functions
JEL:C3
D2
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des RWI
RWI Discussion Papers

Files in This Item:
File Description SizeFormat
DP_06_038.pdf183.96 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/18589

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.