The Production Structure

  • Rolf Färe
Part of the Lecture Notes in Economics and Mathematical Systems book series (LNE, volume 311)


In this chapter we introduce three models of the production technology, each relating input vectors to output vectors. The input correspondence maps output vectors into subsets of input vectors. This correspondence is the inverse of the output correspondence, which maps input vectors into subsets of output vectors. The two correspondences are equivalent to the graph of the technology (Proposition 2.1.8). Although the three models portray the same technology, they emphasize different aspects of it. The input correspondence highlights input substitution and the output correspondence highlights output substitution, while the graph models input output transformation, like scale properties.


Output Vector Undesirable Output Weak Disposability Efficient Input Strong Disposability 
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Copyright information

© Springer-Verlag Berlin Heidelberg 1988

Authors and Affiliations

  • Rolf Färe
    • 1
  1. 1.Department of EconomicsSouthern Illinois UniversityCarbondaleUSA

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