Cobb–Douglas production function

• https://en.wikipedia.org/wiki/Cobb–Douglas_production_function#Criticisms

A simplified model that explains the total production using labor and capital.

$$Y=A L^{\beta} K^{\alpha}$$

$Y$ is the total production, $L$ is labor input, and $K$ is capital input. $\alpha$ and $\beta$ are called “elasticities” of capital and labor.

Criticisms

• Labini1995why