Definition: Production function
OECD terminology
The maximum set of output(s) that can be produced with a given set of inputs. Use of a production function implies technical efficiency. Synonym for production frontier, the technically efficiency part of a feasible production set, the set of all input-output combinations that are feasible (but not necessarily efficient).
Source:
Organization for Economic Cooperation and Development (OECD), "Measuring Productivity - OECD Manual: Measurement of Aggregate and Industry-Level Productivity Growth", Paris, 2001
Created:
Updated: