Employing LR test for (i) production function testing (Cobb Douglas or Translog) with 5% of significant level, Null hypothesis H0: Cobb-Douglas Production function
and (ii) Hypothesis testing on whether the existing technical inefficiency with H0: There have not been technical efficiency.
Chaudhry (2009) discussed the TFP in Pakistan using the Cobb-Douglas production function
(CD-PF) and trans-log production function.
And if gamma and delta remain constant, capital share remains constant, despite r being larger than g, and r larger than g can be consistent with a Cobb-Douglas production function
Cobb-Douglas production function
was applied to measure the productivity ratios and technical progress.
TFP is derived from an estimation of the Cobb-Douglas production function
, while the Solow residual is derived from growth accounting.
The well-known Cobb-Douglas production function
is amazingly useful in clarifying that growth rates are the sum of three factors: the labor force growth rate, the capital growth rate and the Total Factor Productivity (TFP) growth rate, which is measured as a residual after the labor and capital growth rates have been subtracted from the total economic growth rate.
A constant elasticity of substitution (CES) production function and its special case of the Cobb-Douglas production function
are the most popular choices among theoretical modelers.
Many geographers have applied (TFP) Total Factor Productivity with Cobb-Douglas Production Function
and primary product yield or conventional yield to develop an indicator for crop productivity measurement [9-10].
1), or a homothetic generalized Cobb-Douglas production function
given by (3.
The standard microeconomics model used to describe the relationship between output produced and a set of inputs is the Cobb-Douglas production function
Our main contribution is to provide sufficient conditions on the parameters of the model--namely, on the exponents of the Cobb-Douglas production function
and of the human capital production function, and on the values of random shocks--such that the IFS corresponding to the optimal policy function converges to a unique invariant distribution supported on a (generalized) Sierpinski gasket.
The overall production of a port can be represented by Cobb-Douglas production function