cobb_douglas_2 function

2 inputs Cobb-Douglas Model

This function allows you to compute a Cobb-Douglas production/ utility function with two inputs/goods.

cobb_douglas_2(x, TFP = 1, alpha = 0.5, beta = 1 - alpha)

Arguments

• x: is a data frame with two columns.
• TFP: is the constant of the model. Defaults to 1.
• alpha: is the first input's elasticity. Defaults to a random number between 0 and 1, rounded to two digits.
• beta: is the second input's elasticity. Defaults to 1 - alpha.

Returns

Returns a list object with compued y and elasticities.

Examples

x <- c(3, 4, 5)
y <- c(1, 4, 2)

data <- data.frame(x = x, y = y)

cobb_douglas_2(data)

Author(s)

Pedro Cavalcante Oliveira, Department of Economics, Fluminense Federal University