Taking logs transforms the nonlinear equation into something you can estimate using OLS.
log(Y) = log(K^a * L^b)
log(Y) = a*log(K) + b*log(L)
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- Sat May 26, 2012 8:08 am
- Forum: Data Manipulation
- Topic: Cobb Douglas Function in Eviews 7.
- Replies: 1
- Views: 4226