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