Authors : S. Homayooni and F. Karimzadeh
Abstract: In this study with the use of shephard lema function, share of each factor of production in total costs has been estimated and with the use of these estimates price elasticity's and cross elasticity's have been achieved. Also in this study, Allen elasticity have been estimated. As Allen elasticity are explanatory factors showing changes in the ratio of all factors (due to price change of one of the factors of production) utilization of factors of production has been considered. The factors of production in this study are capital and labor force. The statistical society in this research is a large workshop with 100 personals and more. This classification is according to the latest international classification for the industrial large workshops (2000-2008).
S. Homayooni and F. Karimzadeh, 2010. Capital and Labor Force Substitution Degree in Iran Great Industries (With Using Allen Elasticity Substitution). Journal of Economics Theory, 4: 98-102.