An Econometric Analysis of a Production Function for New Zealand
AbstractUsing the capital stock series recently released by Statistics New Zealand, two approaches have been employed to estimate a production function. The first approach is based on the estimation of a constant elasticity of substitution (CES) production function with a value added form. The second approach is based on a nested CES function. Using the nested structure, we allow imports as an intermediate input in the production block. The estimated results reveal that the data rejects the Cobb-Douglas specification and the use of the value added form is not justifiable.
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Bibliographic InfoPaper provided by New Zealand Treasury in its series Treasury Working Paper Series with number 01/31.
Length: 26 pages
Date of creation: 2001
Date of revision:
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CES production function; Cobb-Douglas specification;
Find related papers by JEL classification:
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
- E23 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Production
This paper has been announced in the following NEP Reports:
- NEP-EFF-2001-12-26 (Efficiency & Productivity)
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