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cobb douglas

Posted: Tue Oct 09, 2012 9:30 pm
by ecomajor
Hi,

I have a data file containing observations on output, capital labor and technology for countries and I am having trouble estimating the cobb-douglas model.

Cobb-Douglas equation is Y = K^α L^β T^y
I used logs to get

log(Y)=αlog(K)+βlog(L)+ylog(T)

But how do i estimate it in eviews to get values for alpha, beta and y?

Appreciate all the help

Re: cobb douglas

Posted: Wed Oct 10, 2012 7:42 am
by EViews Gareth
Quick-Estimate Equation, and then enter:

Code: Select all

Log(Y) log(K) log(L) log(T)
and hit return.

Re: cobb douglas

Posted: Wed Oct 10, 2012 8:35 am
by ecomajor
i love you! thanks heaps bro

Re: cobb douglas

Posted: Wed Oct 10, 2012 8:38 am
by ecomajor
Another quick question, how do you test for constant returns to scale using a Wald test?

again i appreciate all the help