Dear AllStat Users,
Can any one help me about the ranges of parameter spaces of Cobb-Douglas
Production Function of form:
Y = ALPHA*(L^(BETA1))*(K^(BETA2))
and about the ranges of parameter spaces of C.E.S Production Function of form:
Y = GAMA*((DELTA*K^(-BETA))+((1-DELTA)*L^(-BETA)))^(-PHI/BETA)
For estimating Cobb-Douglad production Function [ Y = ALPHA * (L^(BETA1))
* (K^(BETA2)) ] how can i get initial values? Of course, i can first
linearize it by taking log, but i want to do it in "Non-Linear" way!
And how can i estimate C.E.S Production Function [ Y = GAMA *
((DELTA*K^(-BETA)) + ((1-DELTA)*L^(-BETA)))^(-PHI/BETA) ] using the same
data? How to get the initial value? In this case there is no way to
linearize it. Actually, this is my main concern, the Cobb-Douglas being a
'Toy problem'.
Also, any suggestion about which statistical software / package can be used
to estimate these parameters and how?
I am using the data http://www.angelfire.com/ab5/get5/klein.txt
to estimate these non-linear functions.
Any response / help / comment / suggestion / idea / web-link / replies will
be greatly appreciated.
Thanks in advance for your time.
_______________________
Mohammad Ehsanul Karim <[log in to unmask]>
Institute of Statistical Research and Training
University of Dhaka, Dhaka- 1000, Bangladesh
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