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 Determination of Probability Using Normal Distribution by Homework Help Classof1
Cover of the book Freuquency Distribution and Hologram using Scale and Variable by Homework Help Classof1
Cover of the book Payment of Stock Dividends by Homework Help Classof1
Cover of the book Hypothesis Tesing: If mean Length is Signficantly Less Than a Given value by Homework Help Classof1
Cover of the book Lease and Sublease Details in Journal Entries by Homework Help Classof1
Cover of the book Capital Budgeting Maintenance Costs by Homework Help Classof1
Cover of the book Financial Accounting Percentage of Total Assets by Homework Help Classof1
Cover of the book Evaluating the vertex from the given Equation by Homework Help Classof1
Cover of the book Deriving Marginal Utility From Consumption of Goods. 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 Quantum number representations by Homework Help Classof1
Cover of the book Evaluation of Common Stock by Homework Help Classof1
Cover of the book Decision Making Under Monopoly by Homework Help Classof1
Cover of the book Importance of Efficiency in Competition by Homework Help Classof1
Cover of the book American Women: Education and Rights 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