Leontief production function
E541649
The Leontief production function is an economic model of production that assumes fixed input proportions with no substitutability between factors, often used in input–output analysis.
Statements (47)
| Predicate | Object |
|---|---|
| instanceOf |
economic model
ⓘ
microeconomic concept ⓘ production function ⓘ |
| appliesTo | multi-input production processes ⓘ |
| assumes |
constant returns to scale
ⓘ
fixed input proportions ⓘ no joint production within a sector ⓘ no substitutability between inputs ⓘ |
| belongsTo | Leontief production model NERFINISHED ⓘ |
| characterizedBy |
L-shaped isoquants
ⓘ
fixed technical coefficients ⓘ perfect complementarity of inputs ⓘ zero elasticity of substitution between inputs ⓘ |
| contrastedWith |
CES production function
NERFINISHED
ⓘ
Cobb–Douglas production function NERFINISHED ⓘ linear production function with perfect substitutes ⓘ |
| developedBy | Wassily Leontief NERFINISHED ⓘ |
| developedInField | economics ⓘ |
| developedInSubfield | input–output economics ⓘ |
| hasFunctionalForm | Q = min{ x1 / a1 , x2 / a2 , … , xn / an } ⓘ |
| hasIsoquants | right-angle isoquants ⓘ |
| hasProperty |
constant average and marginal input requirements
ⓘ
homogeneous of degree one ⓘ non-differentiable along kink points ⓘ piecewise linear in inputs ⓘ |
| implies |
Leontief technology matrix in input–output models
ⓘ
constant input coefficients per unit of output ⓘ no factor substitution in response to price changes ⓘ |
| mathematicallyExpressedAs | Q(x) = min_i (x_i / a_i) ⓘ |
| namedAfter | Wassily Leontief NERFINISHED ⓘ |
| relatedTo |
Leontief inverse
NERFINISHED
ⓘ
input–output table ⓘ technical coefficients matrix ⓘ |
| usedFor |
analyzing inter-industry relationships
ⓘ
estimating input requirements for given output levels ⓘ modeling fixed-proportions technologies ⓘ policy impact analysis via input–output tables ⓘ |
| usedIn |
computable general equilibrium models
ⓘ
environmental input–output analysis ⓘ general equilibrium models ⓘ industrial economics ⓘ input–output analysis ⓘ multi-sector growth models ⓘ production theory ⓘ short-run production analysis with fixed proportions ⓘ |
| usedToRepresent |
industries with rigid production recipes
ⓘ
technologies with fixed capital–labor ratios ⓘ |
Referenced by (1)
Full triples — surface form annotated when it differs from this entity's canonical label.