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Estimation of a Production Function for Philippine Retail Stores

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  • Patalinghug Jason C.

    (Department of Economics and Finance, Southern Connecticut State University, USA)

Abstract

The purpose of this paper is the estimation of a production function for retail stores in the Philippines. A generalized Cobb-Douglas production function is utilized for this purpose. Ordinary Least Squares is used in obtaining the coefficients for labor and capital. The results show that the marginal product of labor to be higher than the marginal product of capital and the hypothesis of constant returns to scale is not rejected.

Suggested Citation

  • Patalinghug Jason C., 2019. "Estimation of a Production Function for Philippine Retail Stores," Economics, Sciendo, vol. 7(1), pages 69-79, June.
    • Handle: RePEc:vrs:econom:v:7:y:2019:i:1:p:69-79:n:6
    DOI: 10.2478/eoik-2019-0006
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    production function; retail industry; Philippines;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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