Cobb-Douglas production function

A Cobb-Douglas production function has an expansion path which is a straight line through the origin.

In a typical Cobb-Douglas production function the golden rule savings rate is alpha.

He published many works on both subjects, however he is most famous for developing the Cobb-Douglas production function in economics.

When λ 0 this produces the famous Cobb-Douglas production function:

Another is as a Cobb-Douglas production function:

Consider Cobb-Douglas production function .

Douglas is probably best-known to economics students as the co-author of the 1928 article with Charles Cobb that first laid out the Cobb-Douglas production function.

Leontief, linear and Cobb-Douglas production functions are special cases of the CES production function.

Instead of the relatively simple economic growth equation used for some researchers use a Cobb-Douglas production function instead (Leeves and Herbert, 2002).

In the Cobb-Douglas production function referred to above, returns to scale are increasing if , decreasing if , and constant if .

The first line is analogous to the production technology found in the Harrod-Domar growth model, while the function in the second resembles the Cobb-Douglas production function.

The Solow-Swan growth model that followed several years later borrowed heavily from the Harrod-Domar model and used a variable proportions Cobb-Douglas production function.

To see what may happen, consider the case of a Cobb-Douglas production function, as illustrated in Fig. 8-4 (the same figure as before, with the pre-tax equilibrium at P).

Each biomass unit vessel catch is computed by Cobb-Douglas production function, applying two input variables: Number of fishing days d) and Biomass unit x).

A third way to look this problem is to remember that many neoclassical economists assume that both individual firms (or sectors) and the entire economy fit the Cobb-Douglas production function with constant returns to scale.

In short, for the sum of Cobb-Douglas production functions to equal a Cobb-Douglas, the production functions for all of the different sectors have to have the same values of A and a.

In lieu of the diminishing returns of capital implied by the usual parameterizations of a Cobb-Douglas production function, the AK model uses a linear model where output is a linear function of capital.