The object of this book is to present a complete, systematic and thorough exposition of the neoclassical theory of production and distribution. Despite this basic objective, each chapter presents extensions of neoclassical theory and interpretations of established relations. The book has two distinct parts. In Part I the microeconomic theories of production, cost and derived input demand are explored in depth for both fixed-proportions and variable-proportions production functions. Special emphasis is placed upon the characteristics and implications of production functions homogeneous of degree one. Part II is devoted chiefly to the neoclassical theory of aggregate relative factor shares, the elasticity of substitution, and technological progress.
1. Introduction; Part I. The microeconomic theory of production: 2. The technical theory of production under condition of fixed proportions; 3. The economic theory of production under conditions of fixed proportions; 4. Technical aspects of continuous production functions: general theory; 5. Technical aspects of continuous production functions homogeneous of degree one; 6. Economic theory of production with fixed input prices; 7. The theory of cost with fixed input prices; 8. The economic theory of cost and production with variable input prices; 9. 'Inferior factors' and the theories of production and input demand; 10. Theory of the multi-product firm; Part II. Macroeconomic theories of distribution and technological progress: 11. Technological progress and the neoclassical theory of production; 12. Technological progress and the neoclassical theory of distribution; 13. Vintage models and fixed proportions in neoclassical theory; 14. Learning by doing; 15. Monopoly and aggregate demand as determinants of relative factor shares; 16. Induced bias of invention and the theory of distributive shares.