On Transferable Machines
16 Pages Posted: 3 Jun 2016
Date Written: July 2016
To avoid the intricacies of pure joint production, it is usually assumed that machines cannot be transferred across industries. Salvadori, however, identified a case in which productive systems with transferable machines have the same properties as those with non‐transferable machines. We reinterpret Salvadori's condition and proceed to a comparative analysis of the two types of models, which explains why some properties still hold while others are lost.
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