Aggregate Production Function and Income Identity - Empirical Analysis
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F67985807%3A_____%2F17%3A00475756" target="_blank" >RIV/67985807:_____/17:00475756 - isvavai.cz</a>
Alternative codes found
RIV/60460709:41110/17:73843 RIV/61384399:31140/17:00050404
Result on the web
<a href="http://dx.doi.org/10.20472/ES.2017.6.1.001" target="_blank" >http://dx.doi.org/10.20472/ES.2017.6.1.001</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.20472/ES.2017.6.1.001" target="_blank" >10.20472/ES.2017.6.1.001</a>
Alternative languages
Result language
angličtina
Original language name
Aggregate Production Function and Income Identity - Empirical Analysis
Original language description
Aggregate production function, especially in its Cobb-Douglas and more general CES form, is still very popular among economists. However there is a huge and long-standing critique regarding the function. The core of the criticism which prevailed until these days is that not only the Cobb-Douglas but also CES aggregate production functions are nothing more than income identity in disguise. Such fact would have serious implications for contemporary macroeconomics - both theory and practice. In this paper we estimated Cobb-Douglas and CES production functions in traditional way. Then we used capital and labour services instead of capital stock and labour. We came to conclusion that to get statistically sound results when elasticities equal factor shares, it is necessary to use the latter approach to deal with the factor´s utilization. However doing so revealed that such modified estimate is really only an estimate of income identity in disguise as predicted by the critique.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
10103 - Statistics and probability
Result continuities
Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2017
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
International Journal of Economic Sciences
ISSN
1804-9796
e-ISSN
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Volume of the periodical
6
Issue of the periodical within the volume
1
Country of publishing house
CZ - CZECH REPUBLIC
Number of pages
17
Pages from-to
1-17
UT code for WoS article
000401912700001
EID of the result in the Scopus database
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