Home > Term: cobb-douglas function
cobb-douglas function
A popular functional form for production and utility functions. With arguments X = (X1,. . . ,Xn), the function is F(X) = AiXii, where ii = 1 and A are positive constants. This function has elasticity of substitution between arguments equal to one. As a production or utility function, it has competitive expenditure shares equal to i.
- Part of Speech: noun
- Industry/Domain: Economy
- Category: International economics
- Company: University of Michigan
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Creator
- Noroc
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