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3. Using the data in the table: Estimate linear and multiplicative (Cobb-Douglas) production functions. Based on your results, which one do you consider the better
3. Using the data in the table:
Estimate linear and multiplicative (Cobb-Douglas) production functions. Based on your results, which one do you consider the better model, and why?
Plant | Output | Capital | Labor |
1 | 605.3 | 18891 | 700.2 |
2 | 566.1 | 19201 | 651.8 |
3 | 647.1 | 20655 | 822.9 |
4 | 523.7 | 15082 | 650.3 |
5 | 712.3 | 20300 | 859 |
6 | 487.5 | 16079 | 613 |
7 | 761.6 | 24194 | 851.3 |
8 | 442.5 | 11504 | 655.4 |
9 | 821.1 | 25970 | 900.6 |
10 | 397.8 | 10127 | 550.4 |
11 | 896.7 | 25622 | 842.2 |
12 | 359.3 | 12477 | 540.5 |
13 | 979.1 | 24002 | 949.4 |
14 | 331.7 | 8042 | 575.7 |
15 | 1064.9 | 23972 | 925.8 |
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