|
Estimation of the Cobb-Douglas Production Function
e-Min Wu
Abstract
In this paper we derive the exact distribution of the indirect least squares estimator of the coefficients of the Cobb-Douglas production function within the context of a stochastic production model of Marschak-Andrews type. We also give a finite sample test of hypotheses on the coefficients of the production function and discuss a method of testing whether there is any systematic deviation from the profit maximizing conditions.
|
