Decreasing return to scale
Posted: Thu Mar 24, 2011 6:22 pm
Hi all ,
I have been doing this question for a while but can't figure the answer
Given a cobb-douglas production function and we need to estimate if it's decreasing return to scale .
It's obvious that we have to take log from both sides , but when it comes to hypothesis testing , i have no idea .
Is Eviews possible to test
H0: B1+B2 >= 1
H1:B1 +B2 < 1
Please help .
I have been doing this question for a while but can't figure the answer
Given a cobb-douglas production function and we need to estimate if it's decreasing return to scale .
It's obvious that we have to take log from both sides , but when it comes to hypothesis testing , i have no idea .
Is Eviews possible to test
H0: B1+B2 >= 1
H1:B1 +B2 < 1
Please help .