This paper discusses the sufficiency of the »viability condition« of Okishio's theorem for signalling profit improving choice of techniques. Some counter‐examples are given for linear technologies with joint production. Technological change which conform to the prediction of the theorem ‐ choices made on the basis of the viability condition lead to higher average rate of profit ‐ is called regular, and sufficient conditions for regularity are specified. Copyright

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Persistent URL dx.doi.org/10.1111/j.1467-999X.1991.tb00363.x
Journal Metroeconomica: international review of economics
Citation
Warskett, G. (1991). CHOICE OF TECHNIQUES AND THE THEOREM OF OKISHIO. Metroeconomica: international review of economics, 42(2), 125–136. doi:10.1111/j.1467-999X.1991.tb00363.x