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Original Articles

Estimation of the Cobb-Douglas with zero input levels: bootstrapping and substitution

Pages 677-679 | Published online: 06 Oct 2010
 

Abstract

New informational technologies have led to a rebirth of interest in primal production functions. This study revisits the vexing question of the estimation of the Cobb-Douglas production function given zero input levels for some observations. A resampling technique is proposed that produces a sample with nonzero input levels. The results of the resampling technique are then compared with the substitution results using informational measures of the implied cost shares.

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