The Use of the Cobb-Douglas Function in the Information Support of State Planning

Abstract

Abstract. The goal of the study is to test the hypothesis on the practicality of using the Cobb-Douglas function in the information support of state planning as a method of numerical analysis at the regional management of government. The first part of the article explains the rationale for the development of digital models in public administration, the results of the analysis of modern publications on the study of factors of growth and constraint of economic development and the methods used for these studies. The second part of the article contains the goal and tasks of the study, the basic hypothesis of the study. The third part of the article presents the results of the research carried out on the influ-ence of the main factors of production, labour and capital on the volume of turnover of enterprises using the Cobb-Douglas production function on the example of five branches of economy of Volgograd oblast. The last part of the article summarizes the results of the study. In particular, it is noted that the growth of the turnover of enterprises in the region was positively influenced by both the increase in the value of fixed production assets and wage growth. However, the pattern of declining average efficiency of fixed production assets in all sectors and the fact that turnover rates are higher than the value of fixed production assets may indicate inefficiencies in their use. In two sectors of the region, the extractive industry and construction, there is a decrease in the average effi-ciency of wages, which may indicate ineffective management material incentives to work in the sectors. Based on the results of the research conducted it is concluded that it is appropriate to use the Cobb-Douglas function as a numerical method of analysis in in-forming state planning, including in the management of state programmes at the regional management level to validate the methods and instruments of economic regulation.