A{i,j} ≡ an interaction coefficient between i and j in the production of y, ak ≡
a contribution factor by xk in the production of y, and ρij ∈ (−∞, 1] − {0}
is a factor related to the substitutability between i and j in the production of
y, to be explained later, and s > 0 is the ”elasticity of scale” measuring the
percentage increase in y due to a one-percent increase in all the inputs.
A{i,j} ≡ an interaction coefficient between i and j in the production of y, ak ≡a contribution factor by xk in the production of y, and ρij ∈ (−∞, 1] − {0}is a factor related to the substitutability between i and j in the production ofy, to be explained later, and s > 0 is the ”elasticity of scale” measuring thepercentage increase in y due to a one-percent increase in all the inputs.
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