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Unpublished Paper
Marshall's Rules with Aggregate Inputs
  • Alberto Behar, University of Oxford
We establish the formal link between the separability of inputs in a production function and the aggregate elasticity of demand for those inputs. This validates the implicit assumption used when calculating an aggregate elasticity with aggregated input prices and provides a practical approach to calculating an aggregate elasticity when one has disaggregated prices. We illustrate the approach to add to a thin empirical literature on labour demand elasticities in developing countries by using South African data.
  • Marshall's Rules,
  • labour demand
Publication Date
Citation Information
Alberto Behar. "Marshall's Rules with Aggregate Inputs" (2009)
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