Accession Number : ADA186372
Title : An Extended Cobb-Douglas Form for Use in Production Economics.
Descriptive Note : Research rept.,
Corporate Author : TEXAS UNIV AT AUSTIN CENTER FOR CYBERNETIC STUDIES
Personal Author(s) : Charmes, A ; Cooper, W W ; Schinnar, A P
PDF Url : ADA186372
Report Date : Dec 1986
Pagination or Media Count : 36
Abstract : The Cobb-Douglas function is widely used in production economics in the following form: A = AL sub alpha K sub beta, where alpha and beta along with A are positive constants that relate the inputs L (=Labor) and K (=Capital) to the amount of output Q. A variety of supposed alternatives and generalizations have been suggested in place of the Cobb-Douglas form for use in production economics. These alternatives and generalizations are here shown to be representable in an extended Cobb-Douglas form in which A, alpha and beta are functions of L an K rather than constants. This extension is then formally related to other general forms, such as the minimum discrimination information statistics, and used to explain the successful uses of the Cobb-Douglas function for the empirical applications in many different countries and contexts. Keywords: Production function; Aggregation; Homogenous functions.
Descriptors : *STATISTICAL FUNCTIONS, *ECONOMIC ANALYSIS, CONSTANTS, DISCRIMINATION, HOMOGENEITY
Subject Categories : Statistics and Probability
Economics and Cost Analysis
Distribution Statement : APPROVED FOR PUBLIC RELEASE