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Distinguishing the two forms of the constant percentage learning curve model

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  • JOYCE T. CHEN
  • RENE P. MANES

Abstract

. There is often evidence of confusion between two forms of the constant percentage learning curve model: the cumulative average and the individual unit forms. Failure to distinguish between the two models can lead to their misuse and to potentially serious errors of estimation. A precise statement of the difference between the two clarifies the errors of misspecification. This note provides an analytical comparsion of the two models and addresses empirical estimation issues. Résumé. On a souvent la preuve de la confusion entre deux formules de modèle de la courbe d'apprentissage à pourcentage constant: celle de la moyenne cumulative et celle de l'unité individuelle. Le fait de ne pas distinguer les deux modèles peut conduire à une mauvaise utilisation et éventuellement à de sérieuses erreurs d'estimation. Un examen précis de la différence entre les deux peut clarifier les erreurs de spécification. Cet article présente une comparaison analytique des deux modèles et traite des questions d'estimation empirique.

Suggested Citation

  • Joyce T. Chen & Rene P. Manes, 1985. "Distinguishing the two forms of the constant percentage learning curve model," Contemporary Accounting Research, John Wiley & Sons, vol. 1(2), pages 242-252, March.
  • Handle: RePEc:wly:coacre:v:1:y:1985:i:2:p:242-252
    DOI: 10.1111/j.1911-3846.1985.tb00378.x
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    Cited by:

    1. A. William Richardson, 1988. "Comment on: “Distinguishing the two forms of the constant percentage learning curve modelâ€," Contemporary Accounting Research, John Wiley & Sons, vol. 4(2), pages 609-614, March.
    2. Joyce T. Chen & Rene P. Manes, 1988. "Distinguishing the two forms of the constant percentage learning curve model: A reply," Contemporary Accounting Research, John Wiley & Sons, vol. 4(2), pages 615-616, March.

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