Inada conditions

In macroeconomics, the Inada conditions, named after Japanese economist Ken-Ichi Inada, are assumptions about the shape of a production function that guarantee the stability of an economic growth path in a neoclassical growth model. The conditions as such had been introduced by Hirofumi Uzawa. In macroeconomics, the Inada conditions, named after Japanese economist Ken-Ichi Inada, are assumptions about the shape of a production function that guarantee the stability of an economic growth path in a neoclassical growth model. The conditions as such had been introduced by Hirofumi Uzawa. Given a continuously differentiable function f : X → Y {displaystyle fcolon X o Y} , where X = { x : x ∈ R + n } {displaystyle X=left{xcolon ,xin mathbb {R} _{+}^{n} ight}} and Y = { y : y ∈ R + } {displaystyle Y=left{ycolon ,yin mathbb {R} _{+} ight}} , the conditions are: In the class of CES production functions only the Cobb–Douglas production function meets all of these conditions.