Cobb–Douglas production function

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

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.

Human capital can be also considered in this framework.

$$Y=A K^{\alpha} (HL)^{1-\alpha}$$ Here $H$ represents the human capital.

See also Solow–Swan model

Example usages

• Olley1992dynamics

Criticisms

• Labini1995why