Using Restricted Least Squares Method to Estimate and Analyze the Cobb-Douglas Production Function with Application

H. M. Gorgess; A. I. Abdul Naby

Authors

H. M. Gorgess
A. I. Abdul Naby

Keywords:

General linear model, Cobb-Douglas production function, OLS estimators, RLS estimators, multicollinearity

Abstract

In this paper, the restricted least squares method is employed to estimate the parameters of the Cobb-Douglas production function and then analyze and interprete the results obtained. A practical application is performed on the state company for leather industries in Iraq for the period (1990-2010). The statistical program SPSS is used to perform the required calculations.