The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Cobb–Douglas Functions

  • Murray Brown
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_480

Abstract

Perhaps the most common form of production function in economics, the Cobb–Douglas function has a range of attractive properties. The input demand and supply of output functions have the property of continuous differentiability everywhere on their respective domains; and the form has a function coefficient that is identical to its degree of homogeneity, calculated by summing the factor production elasticities. Its restrictions have made it an object of disdain for some. But the Cobb–Douglas form is remarkably robust in a vast variety of applications and is therefore very likely to endure.

Keywords

Aggregation (production) CES production function Cobb, C. Cobb–Douglas functions Douglas, P. H. Elasticity of substitution Factor substitution Frontier production functions Production functions Technical change Walras, L. Wicksell, J. G. K. Wicksteed, P. H. 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Murray Brown
    • 1
  1. 1.