The Cobb-Douglas Production Function Once Again: Its History, Its Testing, and Some New Empirical Values

Douglas, Paul H.

doi:10.1086/260489

Cited by 318 publications

(138 citation statements)

References 7 publications

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“…This could be taken as good evidence for the existence of an aggregate production function (or alternatively in Popperian terms, of not refuting its existence). This result confirms the earlier crosssectional results of Paul Douglas and his colleagues (see Douglas (1976)). …”

Section: Why Is the Aggregate Production Function Still Widely Used?supporting

confidence: 92%

›Cantabrigian Economics‹ and the aggregate production function

McCombie¹

2011

European Journal of Economics and Economic Policies: Intervention

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In Cambridge, UK, in the late 1960s and early 1970s, there were some of the most distinguished post-war non-neoclassical economists, which included Nicholas Kaldor, Joan Robinson and Piero Sraffa. The Cambridge capital theory controversies seemed to have been decisively settled in Cambridge, UK's favour, yet no alternative paradigm emerged to challenge the prevailing neoclassical orthodoxy. This paper briefly looks at the reasons for this, including why the Cambridge capital theory debate, despite its important ramifications, is now largely forgotten. The paper concludes by looking at a further problem that vitiates the aggregate production function, resulting from the use of constant-price value data in econometric estimation. This criticism has also been widely ignored.

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Section: Why Is the Aggregate Production Function Still Widely Used?supporting

confidence: 92%

›Cantabrigian Economics‹ and the aggregate production function

McCombie¹

2011

European Journal of Economics and Economic Policies: Intervention

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“…Thus, unlike earlier studies for Azerbaijan, we employ the production function as the theoretical framework (Cobb and Howard 1928;Douglas 1976) and we extend it by including budget expenditures, which is our main variable of interest.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

The Effects of Fiscal Policy on Non-Oil Economic Growth

2018

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Abstract:We investigate non-oil sector effects of fiscal policy in Azerbaijan over a long time period in which a recent low oil prices sample is incorporated. To obtain robust empirical findings, we use different test and estimation methods as well as address small-sample bias issues in the extended production function framework. Results show that fiscal policy has a statistically significant positive impact on the non-oil sector both in the long and short run. However, the size of the impact is small compared to the findings of earlier studies due to, we believe, the low oil-price environment and different specifications used. Azerbaijani policymakers should take measures to compensate for the declining share of oil revenues in government revenues. They may consider increasing tax rates, import and export fees, energy and other tariffs as rapid remedies to fill the budget but these measures might hurt economic development. Alternative and less harmful remedies would be optimizing government spending, strongly monitoring ongoing projects, and phasing out social and infrastructure projects, which make lower contributions to growth. Our research opens the way for further investigation of this topic for the oil exporting economies in the future.

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“…C-D production function was first proposed by Douglas [33] and was then constantly improved by other scholars [34][35][36]. The improved C-D production function model is built in this study to correlate economic output, energy input and technological progress with Gross Domestic Product (GDP), as defined in Equation (6).…”

Section: C-d Production Functionmentioning

confidence: 99%

Exploring the Direct Rebound Effect of Energy Consumption: A Case Study

et al. 2018

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Technological innovation plays a crucial role for improving energy efficiency. But the excessive energy consumption has presented a significant challenge at the same time, which indicates that the direct energy rebound effect exists in China. Cobb-Douglas production function and Logarithmic Mean Divisia Index decomposition model are employed to analyze the rebound effect of energy consumption of all three main industries sector in China. The results show that total technological effect curve and total substitution effect curve fluctuated more significantly than total structure effect curve from 1991 to 2014.The first two curves were the most critical factors for the energy consumption intensity. Stabilizing energy prices, developing new and renewable energy and implementing policies related to energy conservation and emission reduction are effective measures to reduce energy consumption intensity. More attention should be paid to the growing demand for living energy consumption derived from the rapid development of the tertiary industry. The direct rebound effect of energy consumption in China showed an overall descending trend. This shows that technological effect has well prevented the growth of energy consumption. Direct energy rebound effect can be controlled effectively by means of formulating and implementing the corresponding energy related policies.

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The Cobb-Douglas Production Function Once Again: Its History, Its Testing, and Some New Empirical Values

Cited by 318 publications

References 7 publications

›Cantabrigian Economics‹ and the aggregate production function

›Cantabrigian Economics‹ and the aggregate production function

The Effects of Fiscal Policy on Non-Oil Economic Growth

Exploring the Direct Rebound Effect of Energy Consumption: A Case Study

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