1. How Sound Are The Foundations Of The Aggregate Production Function?
This critique is that because at the aggregate level only value data can be used to estimate production function, this means that the estimated parameters of the production function are merely capturing an underlying accounting identity. ... It is either an illuminating parable, or else a mere device for handling data, to be used so long as it gives good empirical results, and to be abandoned as soon as it doesnt, or as soon as something else better comes along" (Solow, 1966). ... On the other hand, at the aggregate level, constant price value data are used for capital and output. ... Shaikh ...
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- Approx Pages: 44
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- Grade Level: Undergraduate