Cobb-Douglas production function

(redirected from Cobb-Douglas)
Also found in: Wikipedia.

Cobb-Douglas production function

a particular physical relationship between OUTPUT of products and FACTOR INPUTS (LABOUR and CAPITAL) used to produce these outputs. This particular form of the PRODUCTION FUNCTION suggests that where there is effective competition in factor markets the ELASTICITY OF TECHNICAL SUBSTITUTION between labour and capital will be equal to one; that is, labour can be substituted for capital in any given proportions, and vice-versa, without affecting output.

The Cobb-Douglas production function suggests that the share of labour input and the share of capital input are relative constants in an economy, so that although labour and capital inputs may change in absolute terms, the relative share between the two inputs remains constant. See PRODUCTION POSSIBILITY BOUNDARY, CAPITAL-LABOUR RATIO, PRODUCTION FUNCTION, CAPITAL-INTENSIVE FIRM/ INDUSTRY, ISOQUANT CURVE, ISOQUANT MAP.

References in periodicals archive ?
The text relies mainly on the Solow growth model, which is introduced alongside Cobb-Douglas and constant-elasticity-of-substitution functions.
It is assumed to produce output qi using input xi, Cobb-Douglas or Translog production function is employed to estimate production frontier:
Economic measurement of the information technologies and communications in Colombia through the Cobb-Douglas function
Key words: Tomato, Off-Season, Production Cost, Net Income, BCR, Cobb-Douglas.
Chaudhry (2009) discussed the TFP in Pakistan using the Cobb-Douglas production function (CD-PF) and trans-log production function.
First, a derivation of a probability polynomial from a Cobb-Douglas function, using the quantities of talent employed by the competing teams as the only arguments, is presented to show that an inverted U-shaped parabola of probability can occur not only in the case of UOH, but also when demand depends positively on the teams' quality.
If you consider a benchmark case of the Cobb-Douglas production function, Y = [L.
El metodo analitico estandar utilizado por Eurostat para la determinacion del PIB potencial parte de la famosa Funcion de Produccion Cobb-Douglas linealmente homogenea (11):
Adicionalmente, se realizo la estimacion de una funcion de produccion tipo Cobb-Douglas, para aproximarse a los tipos de rendimientos que tienen las empresas en el municipio.
Cobb-Douglas production function was applied to measure the productivity ratios and technical progress.
Our model is the familiar Cobb-Douglas production function: [Y.
2014) usa informacion de firmas formales para estimar la PTF por sector economico (incluyendo el de agricultura) para el periodo 2002-2011, bajo el supuesto de una tecnologia tipo Cobb-Douglas, donde la elasticidad de sustitucion de factores (capital y trabajo) es asumida como constante e igual a 1, algo que empiricamente no es necesariamente cierto.