A Short Review of the SMAC Production-Function

The constant elasticity of substitution production-function or the SMAC production-function has been introduced in economic analysis very recently. Even in this short span of time it has been found very useful and has gained a great deal of popularity. Its practical and theoretical importance is all the greater since the two production-functions which have been studied and used in empirical analysis for a long time, namely the Cobb-Douglas production-function and the Leontief type of fixed input-coefficient production-function, become a particular case of this new production-function. A brief review of the theoretical and empirical work done on this new production-function is given in this article.