We introduce a new type of production function, called approximate Cobb-Douglas function, by a perturbation of Euler's partial differential equation characterizing homogeneous function. We show that ...

In this article, we show that the production, aggregation, and estimation theories that lead to a stochastic-coefficients production function are more general than those leading to a ...

Citations: McGuire, Therese J., Robert Porter, Teresa Garcia-Mila. 1996. The Effect of Public Capital in State-Level Production Functions Reconsidered. Review of Economics and Statistics. (1)177-180.

1. If marginal product is decreasing, then average product must also be decreasing. 2. For a fixed-proportion technology, inputs cannot be substituted for each other in production. 3. The marginal ...