This work deals with the Cobb-Douglas production function and related assumptions. The function has been at the center of the so-called ”capital controversy” and the object of a good deal of econometric research. We argue that while in the early days when the function was proposed the...

Economic and mathematical models allow researchers to find out the causal relationship between various economic indicators and determine internal and external factors of interaction. Production functions allow us to model the dependence of the dynamics of factors of production on the dynamics of...

This paper presents a new nested production function that is specifically designed for analyzing capital and labor intensity of manufacturing industries in developing and developed regions. The paper provides a rigorous theoretical foundation for this production function. The analysis shows that...

This paper performs a nonlinear estimation of a normalized CES production function within a system of equations with a panel of Spanish regions for the period 1964-2013. It obtains an elasticity of substitution below one and identifies different rates of factor-augmenting technical progress. The...

This study proposes a novel production function of digital empowerment. It constructs a theoretical framework to analyze the digital enabling process for enterprises from the production factor and economic activity aspects. It uses data mining technology to measure the degree of digitalization,...