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 Financial Accounting Net Income by Homework Help Classof1
Cover of the book Paired Sample t-Test by Homework Help Classof1
Cover of the book Project Management Life Cycle by Homework Help Classof1
Cover of the book Financial Accounting Earnings Statement by Homework Help Classof1
Cover of the book Find the Probability for Normal Distribution by Homework Help Classof1
Cover of the book Probability of Line Segment by Homework Help Classof1
Cover of the book Present Value of Data Furnished by Homework Help Classof1
Cover of the book Decision Making Based on NPV of Capital Project by Homework Help Classof1
Cover of the book Calculation of Net Present Value by Homework Help Classof1
Cover of the book Determination of Coupon Rate of a Bond by Homework Help Classof1
Cover of the book Analysis of Issues Related to Health Insurance by Homework Help Classof1
Cover of the book Analysis of Unfavourable Income Variance by Homework Help Classof1
Cover of the book Calculating the Unit Price, Profit Functions from the Given Data by Homework Help Classof1
Cover of the book Calculation of Various Financial Ratios from the Given Information by Homework Help Classof1
Cover of the book Short Notes on Employee Wages. 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