Cobb Douglas Production Function

Business & Finance, Economics, Microeconomics
Cover of the book Cobb Douglas Production Function by Homework Help Classof1, Classof1
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Homework Help Classof1 ISBN: 1230000116726
Publisher: Classof1 Publication: March 21, 2013
Imprint: Language: English
Author: Homework Help Classof1
ISBN: 1230000116726
Publisher: Classof1
Publication: March 21, 2013
Imprint:
Language: English

" Write out exact expressions (in terms of Q, K, and L) for the OLS ‘normal equation’ (4 equations in 4 unknowns) for a data set with 50 observations.
Returns to scale (RTS) in a 3-factor Cobb-Douglas production function are given by γ_1+γ_2+γ_3. If OLS is unbiased, will the sum of the OLS slopes in our model provide an unbiased estimator for returns to scale? Explain.
Rewrite this model so that it will always exhibit constant RTS (i.e., γ_1+γ_2+γ_3=1). Simplify terms so that you end up with an equation of the form:
Y_i=γ_0+γ_1 X_1i+γ_2 X_2i+u_i;
Where Y, X1 and X2 are functions of the variables in the original variables
Explain how you could use OLS regression results from the two versions of the model (with and without constant returns to scale) to formally test whether or not the true production function exhibits constant returns to scale. Specify null and alternative hypothesis, the exact form of the test statistic, and the exact degrees of freedom for the test.
"

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

" Write out exact expressions (in terms of Q, K, and L) for the OLS ‘normal equation’ (4 equations in 4 unknowns) for a data set with 50 observations.
Returns to scale (RTS) in a 3-factor Cobb-Douglas production function are given by γ_1+γ_2+γ_3. If OLS is unbiased, will the sum of the OLS slopes in our model provide an unbiased estimator for returns to scale? Explain.
Rewrite this model so that it will always exhibit constant RTS (i.e., γ_1+γ_2+γ_3=1). Simplify terms so that you end up with an equation of the form:
Y_i=γ_0+γ_1 X_1i+γ_2 X_2i+u_i;
Where Y, X1 and X2 are functions of the variables in the original variables
Explain how you could use OLS regression results from the two versions of the model (with and without constant returns to scale) to formally test whether or not the true production function exhibits constant returns to scale. Specify null and alternative hypothesis, the exact form of the test statistic, and the exact degrees of freedom for the test.
"

More books from Classof1

Cover of the book Physiology Taste Recognition by Homework Help Classof1
Cover of the book AC Current Eletricity Step up Transformer by Homework Help Classof1
Cover of the book Moral Justification on Internet Security Options by Homework Help Classof1
Cover of the book Macro Economics Inflation by Homework Help Classof1
Cover of the book Sampling Distribution for the Proportion by Homework Help Classof1
Cover of the book Short Run Phillips Curve by Homework Help Classof1
Cover of the book Analyzing The Budget Line by Homework Help Classof1
Cover of the book Finding the Given Variables by Using Taylor Series Expansion. by Homework Help Classof1
Cover of the book Fractions in Terms of LCM by Homework Help Classof1
Cover of the book Problems Explaining the Advantage of Perfect Competition by Homework Help Classof1
Cover of the book Solving Quadratic Equations by Factoring by Homework Help Classof1
Cover of the book Probability based on Binomial Distribution by Homework Help Classof1
Cover of the book Cost and Value of Services in Chippy Potato Chips by Homework Help Classof1
Cover of the book Finding the Average Cost Function by Homework Help Classof1
Cover of the book Application of Balanced Scorecard by Homework Help Classof1
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy