This arises from the fact that ideally the production function is a microeconomic concept, specifying the relationship between physical outputs and inputs (such as numbers of widgets, persons employed, and identical machines). ... Shaikh (1974, 1980, 1987) generalised it to time-series estimation of production functions and Simon (1979b) also considered the criticism in the context of both cross-section and time-series data. ... Phelps Brown's critique was addressed to the fitting of production functions using cross-sectional data and was specifically directed at Douglas's various st...

• Word Count: 11086
• Approx Pages: 44
• Has Bibliography
• Grade Level: Undergraduate