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Estimation of the Cobb-Douglas with zero input levels: bootstrapping and substitution

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  • Charles Moss

Abstract

New informational technologies have led to a rebirth of interest in primal production functions. This study revisits the vexing question of the estimation of the Cobb-Douglas production function given zero input levels for some observations. A resampling technique is proposed that produces a sample with nonzero input levels. The results of the resampling technique are then compared with the substitution results using informational measures of the implied cost shares.

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  • Charles Moss, 2000. "Estimation of the Cobb-Douglas with zero input levels: bootstrapping and substitution," Applied Economics Letters, Taylor & Francis Journals, vol. 7(10), pages 677-679.
    • Handle: RePEc:taf:apeclt:v:7:y:2000:i:10:p:677-679
    DOI: 10.1080/135048500416012
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    Cited by:

    1. Gambaro, Marco & Puglisi, Riccardo, 2013. "Complement or substitute? The internet as an advertising channel, evidence on advertisers on the Italian market, 2005-2009," 24th European Regional ITS Conference, Florence 2013 88464, International Telecommunications Society (ITS).
    2. Marco GAMBARO & Riccardo PUGLISI, 2012. "Complement or substitute? The internet as an advertising channel, evidence on advertisers on the Italian market, 2004-2009," Departmental Working Papers 2012-11, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    3. Sarriera, Javier Morales & Araya, Gonzalo & Serebrisky, Tomas & Briceno-Garmendia, Cecilia & Schwartz, Jordan, 2013. "Benchmarking container port technical efficiency in Latin America and the Caribbean : a stochastic frontier analysis," Policy Research Working Paper Series 6680, The World Bank.
    4. Salois, Matthew J. & Livanis, Grigorios T. & Moss, Charles B., 2006. "Estimation of Production Functions using Average Data," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35401, Southern Agricultural Economics Association.
    5. Konno, Akio & Kato, Hironori & Takeuchi, Wataru & Kiguchi, Riku, 2021. "Global evidence on productivity effects of road infrastructure incorporating spatial spillover effects," Transport Policy, Elsevier, vol. 103(C), pages 167-182.
    6. Alberto López, 2014. "Outsourcing and firm productivity: a production function approach," Empirical Economics, Springer, vol. 47(3), pages 977-998, November.

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