Aggregate Production Function and Income Identity - Empirical Analysis

Kód výsledku v 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>

Nalezeny alternativní kódy

RIV/60460709:41110/17:73843 RIV/61384399:31140/17:00050404

Výsledek na webu

<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>

Jazyk výsledku

angličtina

Název v původním jazyce

Aggregate Production Function and Income Identity - Empirical Analysis

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

Aggregate Production Function and Income Identity - Empirical Analysis

Popis výsledku anglicky

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.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

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OECD FORD obor

10103 - Statistics and probability

Projekt

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Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2017

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

International Journal of Economic Sciences

ISSN

1804-9796

e-ISSN

—

Svazek periodika

6

Číslo periodika v rámci svazku

1

Stát vydavatele periodika

CZ - Česká republika

Počet stran výsledku

17

Strana od-do

1-17

Kód UT WoS článku

000401912700001

EID výsledku v databázi Scopus

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