• Research
    • Research
    • KCG Projects
    • Publications
      • Working Papers
      • Journal Articles
      • Policy Papers
      • Public Contributions
    • News
  • People
    • Managing Director and Coordinator
    • Fellows
    • External Research Fellows
  • Events
  • About / Contact
KCG Kiel Menü

Menü

  • Research
  • People
  • Events
  • About

The First KCG Lunch-Time Seminar of 2020 will Take Place on January 17

14th January 2020
KCG Secretary
  • News
KCG Logo

The Cobb-Douglas production function is one of the functional forms widely used in the fields of economics and econometrics to describe the quantitative relationship between production factors and outputs. Although it is widely applied in the economic and econometric research, there has been criticism since its introduction for its weak foundation and its insufficient link to the real production processes. Focusing on discussing the relevance and caveats of the Cobb-Douglas production function for research, Prof. Tomas Havranek, Ph.D. (Charles University, Prague) will give the first KCG Lunch-Time seminar of 2020 on January 17. The abstract of the presentation titled “Death to the Cobb-Douglas Production Function” is as follows.

Abstract: We show that the large elasticity of substitution between capital and labour estimated in the literature on average, 0.9, can be explained by three factors: publication bias, use of aggregated data, and omission of the first-order condition for capital. The mean elasticity conditional on the absence of publication bias, disaggregated data, and inclusion of information from the first-order condition for capital is 0.3. To obtain this result, we collect 3,186 estimates of the elasticity reported in 121 studies, codify 71 variables that reflect the context in which researchers produce their estimates, and address model uncertainty by Bayesian and frequentist model averaging. We employ nonlinear techniques to correct for publication bias, which is responsible for at least half of the overall reduction in the mean elasticity from 0.9 to 0.3. The weight of evidence accumulated in the empirical literature emphatically rejects the Cobb-Douglas specification.

The seminar will take place at 12:00 on January 17, 2020 in the Medienraum (A211) the Kiel Institute for the World Economy (Kiellinie 66, 24105 Kiel, Germany). More information about the KCG Lunch-Time Seminar can be found here.


Projects

Project 1
Cross-cultural differences in the perception of corporate social responsibility and consumer social responsibility along global supply chains
Project 1
Experimental studies of moral responsibility in global supply chains
Project 1
Modelling economic and social dimensions of global supply chains
Project 1
Global supply chains, environmental regulation and green innovation

Other Projects

KCG Projects

Partner

  • Research
  • Projects
  • PublicationsThe KCG has various series of publications to provide research findings and policy implications to different interested groups, e.g., students, academics, policy makers and the public. The lists of publications will be updated on a regular basis. Brief introductions to the latest publications are provided below.
  • News
  • People
  • Events
  • About / Contact
© 2025 - Kiel Centre for Globalization | Legal Notice | Privacy
Share on
Unsere Website setzt Cookies, um das Angebot für Sie nutzerfreundlich und sicher zu gestalten, sowie zur Erhebung anonymisierter Statistiken. Ausführliche Informationen finden Sie in der Erklärung zum Datenschutz.AkzeptierenNeinErfahren Sie mehr