If it has constant returns to scale, it implies that the output elasticities equal the factor's share of income, allowing a growth-accountant to estimate the amount that changes in each input and in total factor productivity have contributed to economic growth. First proposed by Knut Wicksell, it wa
If it has constant returns to scale, it implies that the output elasticities equal the factor's share of income, allowing a growth-accountant to estimate the amount that changes in each input and in total factor productivity have contributed to economic growth. First proposed by Knut Wicksell, it was tested against statistical evidence and detailed further in a 1928 article in the American Economic Review. In this model, alpha and beta are constants determined by technology, while K and L are capital and labor inputs, respectively. for ten points, name this widely-used production function, taking its name from the last names of its two co-formulators, a mathematician and an economist,
If it has constant returns to scale, it implies that the output elasticities equal the factor's share of income, allowing a growth-accountant to estimate the amount that changes in each input and in total factor productivity have contributed to economic growth.
{Cobb-Douglas} production function