Estimation and Testing of Regression Coefficients in Cobb-Douglas and Other Models

  • Michael D. McCarthy

Abstract

The Cobb-Douglas production function often leads to situations in which the reduced form solutions for the inputs have elasticities of each input with respect to a given exogenous variable which are the same for all reduced form equations. This paper exploits this property to develop estimators that are in the spirit of full information maximum likehood (FIML) and to develop test statistics that are of the Student sort, provided that the reduced form errors have normal properties often used for analysis of this sort.

Keywords

Covariance Income Assure Monopoly 

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References

  1. Anderson T.W. [1958], An Introduction to Multivariate Statistical Analysis (Wiley: New York),section 5.22, pp. 105–107Google Scholar
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  4. McCarthy, Michael D. [ 1987 ], “Exact. Finite Sample Test Statistics for Restricted Reduced Forms: A Generalization of Student’s Result,” IER, pp. 259–269.Google Scholar
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Copyright information

© Springer-Verlag New York Inc. 1990

Authors and Affiliations

  • Michael D. McCarthy
    • 1
  1. 1.Department of EconomicsTemple UniversityUSA

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