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dc.contributor.authorGracia, Eduarden_US
dc.date.accessioned2011-12-08en_US
dc.date.accessioned2011-12-09T12:33:54Z-
dc.date.available2011-12-09T12:33:54Z-
dc.date.issued2011en_US
dc.identifier.citationEconomics: The Open-Access, Open-Assessment E-Journal 5 2011-19 1-50en_US
dc.identifier.pidoi:10.5018/economics-ejournal.ja.2011-19en_US
dc.identifier.urihttp://hdl.handle.net/10419/52688-
dc.description.abstractThe CobbDouglas function is today one of the most widely adopted assumptions in economic modeling, yet both its theoretical and empirical bases have long been under question. This paper builds an alternative function on very different (albeit also neoclassical) microfoundations aimed at both addressing those theoretical drawbacks and providing a better empirical fit than the CobbDouglas formula. The new model, unlike the CobbDouglas function, does not portray installed capacity as aggregate capital but as a sunk cost generating economic rents. An analysis of 1949-2008 annual U.S. growth data suggest this alternative model explains nearly 85 percent of GDP fluctuations and is empirically more robust than the CobbDouglas, whilst both contemporary and lagged aggregate capital are statistically rejected as explanatory variables. This lends support to the old Cambridge Critique”, according to which using value-weighted capital aggregates to explain production simply makes no sense. At face value, these results not only pose a question on any macroeconomic model assuming a CobbDouglas function but also point towards an alternative interpretation of phenomena such as the way monetary policy impacts productivity.en_US
dc.language.isoengen_US
dc.publisherKiel Institute for the World Economy (IfW) Kielen_US
dc.subject.jelE22en_US
dc.subject.jelE23en_US
dc.subject.ddc330en_US
dc.subject.keywordproduction functionen_US
dc.subject.keywordCobbDouglasen_US
dc.subject.keywordcapital controversyen_US
dc.subject.stwProduktionsfunktionen_US
dc.subject.stwMikroökonomische Fundierungen_US
dc.subject.stwCobb-Douglas-Produktionsfunktionen_US
dc.subject.stwKapitaltheorieen_US
dc.subject.stwSchätzungen_US
dc.subject.stwSozialprodukten_US
dc.subject.stwUSAen_US
dc.titleUncertainty and capacity constraints: Reconsidering the aggregate production functionen_US
dc.typeArticleen_US
dc.identifier.ppn679412980en_US
dc.rights.licensehttp://creativecommons.org/licenses/by-nc/2.0/de/deed.enen_US
dc.identifier.repecRePEc:zbw:ifweej:201119-
Appears in Collections:Economics: The Open-Access, Open-Assessment E-Journal - Journal Articles

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