The production function Cobb-Douglas in the Ecuador
DOI:
https://doi.org/10.22267/rtend.181902.97Keywords:
production function, constant returns to scale, output elasticity, Cobb-Douglas function, Ecuador.Abstract
The principal aim of this work is to analyze the behavior of the elasticity of the output before changes in both factors of production: capital and labour, in a function of production with constant returns to scale. For it, the theoretical framework of agreement is discussed to the bibliographical effected review and by means of some econometrics models a function is estimated by neoclassic properties as the function Cobb-Douglas for the case of the Ecuador in the period 1950-2014. In the theoretical model the elasticity is another way of presenting the participations of every input inside the output, and in perfect competition they are equal to the remunerations received in the distribution of the income. The effected estimations throw results that indicate a participation of the capital inside the output that ranges between 0,60 and 0,70, that is to say, this is the elasticity of the output with regard to the capital, according to several regressions to shortly and long-term of the function of added and intensive production. The found results coincide with the available estimations for a wide group of developing countries.
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