Cobb-Douglas Guide, Meaning , Facts, Information and Description

The Cobb-Douglas functional form of production functions in economics is widely used to represent the relationship of an output to inputs.

The form is estimated as a linear relationship using the following expression

where

• O = Output
• I_i = Inputs
• a_i = model coefficients

It was developed Paul Douglas and Richard Cobb.

It has been generalized in the translog functional form.

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