The Econometric SocietyEdited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262
August 15, 2022
Econometrica: May, 1970, Volume 38, Issue 3
https://doi.org/0012-9682(197005)38:3<559:AMPF>2.0.CO;2-E
p. 559-573
David Levhari, Eytan Sheshinski
Machines produce a constant flow of output when operating, and break down in a random process. The task of workers is to repair the broken machines. Servicing time is also a random process [2]. The limiting steady state probabilities and the relation between output and inputs are derived, and fitted to a Cobb-Douglas production function.
