Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/205472 
Year of Publication: 
2001
Series/Report no.: 
New Zealand Treasury Working Paper No. 01/31
Publisher: 
New Zealand Government, The Treasury, Wellington
Abstract: 
Using the capital stock series recently released by Statistics New Zealand, two approaches have been employed to estimate a production function. The first approach is based on the estimation of a constant elasticity of substitution (CES) production function with a value added form. The second approach is based on a nested CES function. Using the nested structure, we allow imports as an intermediate input in the production block. The estimated results reveal that the data rejects the Cobb-Douglas specification and the use of the value added form is not justifiable.
Subjects: 
CES production function
Cobb-Douglas specification
JEL: 
C51
E23
Creative Commons License: 
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Document Type: 
Working Paper

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