Yield law / Political economy - Economy-point.org

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The yield law (also: Law of the removing yield increase) is a theory from the political economy. It concerns itself with the question, how the efficiency of a creation of value process develops, if only a variable factor of production is increased, which remains however alike others (ceteris paribus). The classical yield law is considered as the oldest production function. As its discoverers are considered independently to Turgot, Steuart and Johann Heinrich of

In the diagrammatical representation it reminds of the shape of a S. in the management economics, bent to the right, is well-known the process as production function of the type A. The multi-employment of means of production with Konstanz of the remaining factors of production brings first increasing yield increases (marginal yields or border products), from a certain quantity required to removing and finally even negative marginal yields.

Phases

Plausibility possesses the classical yield law over its entire process (actually only) for agricultural production processes with partial factor variation. Nevertheless it is consulted likewise as yield curve with total factor variation and for other production processes. The reason for it is its high didactical potential, since it exhibits both ranges and removing marginal yields. The place of the change of on removing marginal yields (turning point) is called threshold of the yield law, since starting from this point the law of the removing yield increases applies. With the turning point corresponds the minimum of the neighbouring costs, which is likewise called threshold of the yield law. With the classical yield law the average yields possess a maximum, where the production elasticity is one, i.e. the marginal yields equal the average proceeds are.

Phase I

The first phase is characterized by a superproportional upward gradient of the yield function. Bordering and average proceeds rise likewise, however the phase I is limited by the maximum of the marginal yield function.

Phase II

The second phase is characterized by a under-proportional upward gradient of the yield function. The marginal yield function sinks already again. Phase II is limited by the maximum of the average proceeds function.

Phase III

The third phase is likewise characterized by a under-proportional upward gradient of the yield function. In this phase both the marginal yield function and the Durchscnittsertragsfunktion sink. The phase III is limited by the maximum of the yield function. At this interval border the marginal yield function cuts the abscissa.

Phase IV

In the phase IV exhibit yield, bordering and average proceeds function a negative upward gradient.

Example

In the agriculture the law (also after franz. the economist J. Turgot and its "Turgot yield law") by the example of the use of fertilizer can be pointed out: By the continuously increased use of fertilizers (with otherwise equal lasting resources/conditions (ceteris paribus), thus e.g. equal lasting surface) the yield first constantly increases. That takes yield increase to per additionally yielded fertilizer unit (e.g. frame kg of fertilizers or bag fertilizer) decreases starting from a certain yield quantity. This leads during further fertilizer yield finally even to a total yield reduction (an ultimative use of fertilizers could lead the yield under a level, which would have been reached without fertilizers). Similar observations can be made also with the factors warmth and water.

These observations decrease/go back also on express hard Albert Mitscherlich, who published the law of the minimum and the law of the removing Bodenertrages with appropriate process diagrams in the year 1909.

By the example of the industriellen production or in the administration the law can be observed on the increased employment of personnel with otherwise equal lasting basic conditions likewise: The larger the number of coworkers is, the more largely is communication and tuning need. However situations can be achieved, where coworkers stand themselves mutually only in the way or discourage themselves. More is thus not moved alone by the personnel personalvermehrung. A state, which steers its economics centralistic and assigns employees to the production plants, in order to avoid so the problem of unemployment, can hardly increase its productivity in this kind.

The classical yield law is not necessary for the reason (short term) of a yield-legal cost process, which leads to u-shaped These can appear also with constantly decreasing yield increases as consequence of the interaction of rising border and to sinking average fixed costs.