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Comparative analysis of estimation methods for CES production function

Author

Listed:
  • Nadia Elena Stoicuța

    (University of Petroșani, Romania)

  • Olimpiu Stoicuța

    (University of Petroșani, Romania)

Abstract

This article describes the analysis of the stationary and dynamic case of the Kmenta method for estimating the CES production function. The data series which occur in the analysed models, are given by the real gross value added, regarded as output variable, and the tangible assets, respectively the average number of employees, regarded as input variables. The parameters of the models, are determined using the least squares method (LSM), using the software package Eviews.

Suggested Citation

  • Nadia Elena Stoicuța & Olimpiu Stoicuța, 2015. "Comparative analysis of estimation methods for CES production function," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 15(2), pages 167-180.
    • Handle: RePEc:pet:annals:v:15:y:2015:i:2:p:167-180
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    References listed on IDEAS

    as
    1. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    2. Blackorby, Charles & Russell, R Robert, 1989. "Will the Real Elasticity of Substitution Please Stand Up? (A Comparison of the Allen/Uzawa and Morishima Elasticities)," American Economic Review, American Economic Association, vol. 79(4), pages 882-888, September.
    3. Douglas, Paul H, 1976. "The Cobb-Douglas Production Function Once Again: Its History, Its Testing, and Some New Empirical Values," Journal of Political Economy, University of Chicago Press, vol. 84(5), pages 903-915, October.
    4. Arne Henningsen & Géraldine Henningsen, 2011. "Econometric Estimation of the “Constant Elasticity of Substitution" Function in R: Package micEconCES," IFRO Working Paper 2011/9, University of Copenhagen, Department of Food and Resource Economics.
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    More about this item

    Keywords

    CES production function; least squares method (LSM); Kmenta approximation;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics

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