IDEAS home Printed from https://ideas.repec.org/a/mup/actaun/actaun_2019067051347.html
   My bibliography  Save this article

The Time Augmented Cobb-Douglas Production Function

Author

Listed:
  • Lenka Roubalová

    (Department of Statistics and Operation Analysis, Faculty of Business and Economics, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech Republic)

  • Lenka Viskotová

    (Department of Statistics and Operation Analysis, Faculty of Business and Economics, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech Republic)

Abstract

The main objective of this paper is to propose and verify a time augmentation of the Cobb-Douglas production function parameters which should be able to capture changing conditions over time. The parameters are estimated via the nonlinear least squares method. As data a time series including production and its sources, labour and capital, in the construction industries of six Central European countries for the period 1995-2015 is used. Our results, based on calculation of R2 and Theil's U, prove that the models containing the time augmented parameters are better than the basic one. Also a verification of evaluated models using the economic reality for each country is given. In addition to the superiority of the time augmented models, these are applicable to distinguish the specifics of the development of productivity in individual countries.

Suggested Citation

  • Lenka Roubalová & Lenka Viskotová, 2019. "The Time Augmented Cobb-Douglas Production Function," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 67(5), pages 1347-1356.
    • Handle: RePEc:mup:actaun:actaun_2019067051347
    DOI: 10.11118/actaun201967051347
    as

    Download full text from publisher

    File URL: http://acta.mendelu.cz/doi/10.11118/actaun201967051347.html
    Download Restriction: free of charge
    File URL: http://acta.mendelu.cz/doi/10.11118/actaun201967051347.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.11118/actaun201967051347?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Anthony J. Makin & Sam Strong, 2013. "New measures of factor productivity in Australia: a Sato approach," Applied Economics, Taylor & Francis Journals, vol. 45(17), pages 2413-2422, June.
    2. S K Mishra, 2010. "A Brief History of Production Functions," The IUP Journal of Managerial Economics, IUP Publications, vol. 0(4), pages 6-34, November.
    3. Naudé, Wim & Nagler, Paula, 2017. "Technological Innovation and Inclusive Growth in Germany," IZA Discussion Papers 11194, Institute of Labor Economics (IZA).
    4. Ryadh M. Alkhareif & William A. Barnett & Nayef A. Alsadoun, 2017. "Estimating the Output Gap for Saudi Arabia," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(3), pages 81-90, March.
    5. Sato, Ryuzo, 1970. "The Estimation of Biased Technical Progress and the Production Function," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 11(2), pages 179-208, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Frédéric Reynès, 2011. "The cobb-douglas function as an approximation of other functions," SciencePo Working papers Main hal-01069515, HAL.
    2. Ryuzo Sato & Tamaki Morita, 2009. "Quantity Or Quality: The Impact Of Labour Saving Innovation On Us And Japanese Growth Rates, 1960–2004," The Japanese Economic Review, Japanese Economic Association, vol. 60(4), pages 407-434, December.
    3. H. Georg Schulze, 2010. "Ein Modell der Ekonomie als System von neuronalen Netzwerken - Ein Umriss [Connectionist Economics - An Outline]," Post-Print hal-01492977, HAL.
    4. Ouellette, Pierre & Lasserre, Pierre, 1985. "Mesure de la productivité : la méthode de Divisia," L'Actualité Economique, Société Canadienne de Science Economique, vol. 61(4), pages 507-526, décembre.
    5. repec:spo:wpmain:info:hdl:2441/1cpd872l2j8lb968d53pu5f30q is not listed on IDEAS
    6. Alexandra Naumenko & Seyyed Ali Zeytoon Nejad Moosavian, 2016. "Clarifying Theoretical Intricacies through the Use of Conceptual Visualization: Case of Production Theory in Advanced Microeconomics," Applied Economics and Finance, Redfame publishing, vol. 3(4), pages 103-122, November.
    7. Zhou, Xiaoxiao & Pan, Zixuan & Shahbaz, Muhammad & Song, Malin, 2020. "Directed technological progress driven by diversified industrial structural change," Structural Change and Economic Dynamics, Elsevier, vol. 54(C), pages 112-129.
    8. Frédéric Reynès, 2017. "The Cobb-Douglas function as a flexible function. Analysing the substitution between capital, labor and energy," Documents de Travail de l'OFCE 2017-12, Observatoire Francais des Conjonctures Economiques (OFCE).
    9. Vladimir Gorbunov & Alexander Lvov, 2018. "Effective Production Funds and Production Functions of Regional Small Business," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(2), pages 502-515.
    10. Matthew K. Heun & João Santos & Paul E. Brockway & Randall Pruim & Tiago Domingos & Marco Sakai, 2017. "From Theory to Econometrics to Energy Policy: Cautionary Tales for Policymaking Using Aggregate Production Functions," Energies, MDPI, vol. 10(2), pages 1-44, February.
    11. Alin Cristian Ioan & Catalin Angelo Ioan, 2011. "On The Nature of Level Hyper Surfaces in the Economic Theory," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 5(5), pages 143-149, October.
    12. Alkhareif, Ryadh M. & Barnett, William A., 2020. "Nowcasting Real GDP for Saudi Arabia," MPRA Paper 104278, University Library of Munich, Germany.
    13. Li, Chengming & Huo, Peng & Wang, Zeyu & Zhang, Weiguang & Liang, Feiyan & Mardani, Abbas, 2023. "Digitalization generates equality? Enterprises’ digital transformation, financing constraints, and labor share in China," Journal of Business Research, Elsevier, vol. 163(C).
    14. Li, Xiaogang, 2020. "Innovation, market valuations, policy uncertainty and trade: Theory and evidence," ISU General Staff Papers 202001010800009179, Iowa State University, Department of Economics.
    15. Guyomard, H. & Tavéra, C., 1990. "Technical change and agricultural supply-demand analysis problems of measurement and problems of interpretation," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 26.
    16. Rademeyer, Maryke C. & Minnitt, Richard C.A. & Falcon, Rosemary M.S., 2018. "Revisiting operating cost in resource extraction industries," Resources Policy, Elsevier, vol. 58(C), pages 159-164.
    17. Frédéric Reynès, 2011. "The cobb-douglas function as an approximation of other functions," Working Papers hal-01069515, HAL.
    18. Nagurney, Anna, 2021. "Supply chain game theory network modeling under labor constraints: Applications to the Covid-19 pandemic," European Journal of Operational Research, Elsevier, vol. 293(3), pages 880-891.
    19. Martin Williams & Ronald L. Moomaw, 1989. "Capital and Labour Efficiencies: A Regional Analysis," Urban Studies, Urban Studies Journal Limited, vol. 26(6), pages 573-585, December.
    20. Catalin Angelo Ioan, 2017. "Some Aspects of Production Functions Differential Geometry," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 13(2), pages 248-259, April.
    21. repec:spo:wpmain:info:hdl:2441/eu4vqp9ompqllr09i29kgilc0 is not listed on IDEAS
    22. Weber, William L. & Domazlicky, Bruce R., 1999. "Total factor productivity growth in manufacturing: a regional approach using linear programming," Regional Science and Urban Economics, Elsevier, vol. 29(1), pages 105-122, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mup:actaun:actaun_2019067051347. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ivo Andrle (email available below). General contact details of provider: https://mendelu.cz/en/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.