Leontief production function

E541649

The Leontief production function is an economic model of production that assumes fixed input proportions with no substitutability between factors, often used in input–output analysis.

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Predicate Object
instanceOf economic model
microeconomic concept
production function
appliesTo multi-input production processes
assumes constant returns to scale
fixed input proportions
no joint production within a sector
no substitutability between inputs
belongsTo Leontief production model
characterizedBy L-shaped isoquants
fixed technical coefficients
perfect complementarity of inputs
zero elasticity of substitution between inputs
contrastedWith CES production function
Cobb–Douglas production function
linear production function with perfect substitutes
developedBy Wassily Leontief
developedInField economics
developedInSubfield input–output economics
hasFunctionalForm Q = min{ x1 / a1 , x2 / a2 , … , xn / an }
hasIsoquants right-angle isoquants
hasProperty constant average and marginal input requirements
homogeneous of degree one
non-differentiable along kink points
piecewise linear in inputs
implies Leontief technology matrix in input–output models
constant input coefficients per unit of output
no factor substitution in response to price changes
mathematicallyExpressedAs Q(x) = min_i (x_i / a_i)
namedAfter Wassily Leontief
relatedTo Leontief inverse
input–output table
technical coefficients matrix
usedFor analyzing inter-industry relationships
estimating input requirements for given output levels
modeling fixed-proportions technologies
policy impact analysis via input–output tables
usedIn computable general equilibrium models
environmental input–output analysis
general equilibrium models
industrial economics
input–output analysis
multi-sector growth models
production theory
short-run production analysis with fixed proportions
usedToRepresent industries with rigid production recipes
technologies with fixed capital–labor ratios

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Wassily Leontief knownFor Leontief production function
input–output analysis relatedTo Leontief production function
Leontief production function belongsTo Leontief production model
linked to: Leontief production function