<p><a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=890956" rel="nofollow noreferrer">Belo (2010)</a> uses a production function 
$$
Y_{j,t} = \epsilon_{j,t} F^j(K_{j,t})
$$
where a competitive producer $j$ is allowed to choose the state-contingent productivity level $\epsilon_{j,t}$, subject to the constraint set
defined by the following analytically tractable CES aggregator:
$$
E_t\left[ \left( \frac{\epsilon_{j,t+1}}{\Theta_{j, t+1}}\right)^\alpha \right]^{1/\alpha} \leq 1.
$$
In Cochrane's  2016 essay, "Macro-Finance", Cochrane mentions this specification as a potentially important ingredient for understanding the interaction of macroeconomics and financial markets: </p>

<blockquote>
  <p>The second ingredient, I think, is to enrich the production technology
  so that consumer investors can shape the riskiness of the
  technological opportunities they face. Belo (2010) and Jermann (2013)
  have recently explored specifications of technology that allow such
  choices.</p>
</blockquote>

CC BY-SA 3.0
2018-01-15T20:00:09.840Z
2018-01-15T20:00:09.840Z
jmbejara
<p>Standard production functions are Cobb-Douglas, CES, Leontief.</p>

<p>The most exotic production function I have seen is the Ethier production function. </p>

<p>I am wondering whether there is a book/list of other exotic production functions. i.e. production functions with heterogeneous capital, integrals, etc.</p>

<p>I could not find it doing a google scholar search.</p>

<production-function>
list of exotic production functions?
user56834
# list of exotic production functions?

(Asked by: username_0 on 2018-01-15)

Standard production functions are Cobb-Douglas, CES, Leontief.

The most exotic production function I have seen is the Ethier production function.

I am wondering whether there is a book/list of other exotic production functions. i.e. production functions with heterogeneous capital, integrals, etc.

I could not find it doing a google scholar search.

**Tags:** production-function

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## 1 answers

### Answer by username_1 on 2018-01-15. Score: 3

[Belo (2010)](https://papers.ssrn.com/sol3/papers.cfm?abstract_id=890956) uses a production function
$$
Y\_{j,t} = \epsilon\_{j,t} F^j(K\_{j,t})
$$
where a competitive producer $j$ is allowed to choose the state-contingent productivity level $\epsilon\_{j,t}$, subject to the constraint set
defined by the following analytically tractable CES aggregator:
$$
E\_t\left[ \left( \frac{\epsilon\_{j,t+1}}{\Theta\_{j, t+1}}\right)^\alpha \right]^{1/\alpha} \leq 1.
$$
In Cochrane's 2016 essay, "Macro-Finance", Cochrane mentions this specification as a potentially important ingredient for understanding the interaction of macroeconomics and financial markets:

> The second ingredient, I think, is to enrich the production technology
> so that consumer investors can shape the riskiness of the
> technological opportunities they face. Belo (2010) and Jermann (2013)
> have recently explored specifications of technology that allow such
> choices.


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