1997 Volume 9 Issue 5 Pages 755-761
A production function is to illustrate the relation between the products and producing activities in an industry. Although it is required that coefficient values of the production function should be stable, the stable values of a coefficient is rarely obtained out of statistics of changing economic phenomena.The change of the coefficient values included in the production function can be interpreted to show the possibilities of economy in some sense. In other words, it is natural that the capital input and the labor population should change under a changeable economic state. This causes the change of coefficient values. In this paper, the stress should be placed on that possibilistic regression analysis can be employed to analyze industries considering the possibility of economy. And as an application of the production function, the features of Japanese and American industries are successfully analyzed and the characteristics of Japanese industries are explained by analyzing their cross section data.
