Abstract
AbstractIt is well known that, in continuous time, the Cobb-Douglas function can be derived from the underlying, data governing, accounting identity under some reasonable assumptions (factor shares are constant, and the weighted growth of the labour input price and the capital input price is constant). In this article these results are generalized in three ways: (1) the accounting identity contains a (pure) profit term; (2) continuous time is replaced by discrete time periods; (3) additional assumptions appear to be superfluous. The article also discusses extensions: from two to multiple inputs, from value added to gross output, and from a single production unit to an ensemble of those units.
Publisher
Springer Science and Business Media LLC
Reference36 articles.
1. Balk BM (2008) Price and Quantity Index Numbers: Models for Measuring Aggregate Change and Difference. Cambridge University Press, Cambridge
2. Balk BM (2009) On the Relation Between Gross-output and Value-added Based Productivity Measures: The Importance of the Domar Factor. Macroeconomic Dynamics 13, Supplement No. 2 (Special Issue on Measurement with Theory), 241–267
3. Balk BM (2021) Productivity: Concepts, Measurement, Aggregation, and Decomposition. Contributions to Economics. Springer Nature, Switzerland AG
4. Biddle JE (2021) Progress through Regression: The Life Story of the Empirical Cobb-Douglas Production Function. Cambridge University Press, Cambridge
5. Chambers RG, Ray SC (2021) Neoclassical Production Economics: An Introduction. In: Ray SC, Chambers RG, Kumbhakar SC (eds) Handbook of Production Economics. Springer, Singapore