In this study, the final and implicit form of the production function
used for the steel plant is as below:
The estimates of production function
parameters and inefficiency estimates are biased in the models without inefficiency bound if the bound is finite.
On the national level, the production function
with electricity is E-GDP function as shown below:
By imposing constant returns to scale, the restricted Cobb-Douglas production function
Then we prove that if a quasi-sum production function
satisfies the constant elasticity of substitution property, then its graph has vanishing Gauss-Kronecker curvature (or its graph is a flat space) if and only if the production function
is either a linearly homogeneous generalized ACMS function or a linearly homogeneous generalized Cobb-Douglas function.
The results of the OLS estimates of the Cobb-Douglas production function
are in Table 3.
We assume a priori that aggregate production in Finland can be represented by the standard Cobb-Douglas production function
with constant efficiency levels.
The economy-theoretical vision of the production function
applied to education requires modifications, because in education one acts with human beings in contrast to the economy perspective, that uses other inputs.
Newer developments also consider to vary technical variables of the technology and to verify their effects to GUTENBERGS production function
In an ambitious analysis, they embed a production function
definition of potential output within a large-scale dynamic stochastic general equilibrium (DSGE) model and calibrate separate versions of the model to U.
Examples include considering raw materials (Stier and Bengston 1992) and constant elasticity of substitution production function
with two factors of labor and capital (Monroney 1968; Greber and White 1982; Stier 1982, 1983).
The production function
pre-supposes technical efficiency, whereby maximum output is obtained from a given level of inputs combination; hence it is a factor-product relationship.