This paper presents a stochastic approach to the theory of aggregateproduction function, based on the theory of stochastic differentialequations. The main result is that under certain restrictions the productionfunction converges from below to the Cobb-Douglas functionproviding further support for the conclusion drawn by Jones (2005).
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Find related papers by JEL classification: C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables D2 - Microeconomics - - Production and Organizations