Production Networks: A Dynamic Model of Production.
CALIFORNIA UNIV BERKELEY OPERATIONS RESEARCH CENTER
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This paper introduces the dynamic production network as a dynamic model of production which exhibits the real complexity underlying the simple treatments commonly used in economic analyses. The model reflects the truly dynamic character of production by illustrating directly the time substitutions of both input and output and modeling the intermediate product transfers explicitly. The abstract dynamic production network correspondence which relates input to output for this model is defined. From this, the concept of the technically efficient subset is introduced for which a proof of its non-emptiness is provided. The optimization problem that is used to obtain a technically efficient point can be used fpr resource allocation a preliminary treatment is provided. Some limitations of the present model are also discussed. Author
- Economics and Cost Analysis
- Numerical Mathematics
- Operations Research