Modeling Sustainable Economic Development Using Production Functions

• Yankovyi, Oleksandr ^[4] ; Koval, Viktor ^[1] ; Lazorenko, Larysa ^[5] ; Poberezhets, Olga ^[2] ; Novikova, Marina ^[2] ; Gonchar, Viktoriya ^[3]
  1. [1] National Academy of Sciences of Ukraine

     National Academy of Sciences of Ukraine

     Ucrania

     
  2. [2] National University

     National University

     Estados Unidos

     
  3. [3] Pryazovskyi State Technical University

     Pryazovskyi State Technical University

     Ucrania

     
  4. [4] Department of Economics of Enterprise and Business Organization, Odessa National Economic University
  5. [5] Department of Management, State University of Telecommunication

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• Localización: Estudios de economía aplicada, ISSN 1133-3197, ISSN-e 1697-5731, Vol. 39, Nº Extra 5, 2021 (Ejemplar dedicado a: Special Issue Innovation in the Economy and Society of the Digital Age)
• Idioma: inglés
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• Resumen

  • The most popular two-factor production functions used in the process of modeling sustainable economic development are examined. Economic and mathematical characteristics of Cobb-Douglas production functions, CES-function, linear function, Leontief and Allen functions are considered, in particular, type of dependence of labour productivity in relation to capital-labour ratio of commodity production system within mentioned production functions. Their most important economic and mathematical characteristics are presented: factors average and marginal return, demand for production resources, factor substitution, factors marginal rate of technical substitution, output elasticity by factors, elasticity of factors technical substitution, optimal capital-labour ratio according to the criterion of maximum output. Comparative analysis is given to Cobb-Douglas and CES-functions, which are two production functions mostly required in practice.