FUNCTIONAL SEPARABILITY AND THE EXISTENCE OF CONSISTENT AGGREGATES INUS MANUFACTURING - COMMENT

This paper examines the relationship between separability of the direc t production function in inputs and separability of the indirect produ ction function in input prices. In particular, it shows that simultane ous direct and indirect weak separability implies homotheticity of the direct production function, and hence homotheticity of the indirect p roduction function. Thus, inferences regarding direct separability bas ed on empirical tests for indirect separability would be valid only if homotheticity is also imposed and treated as a maintained hypothesis.