Cobb-Douglas production functions can be formulated using expenditures rather than physical units

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While production functions theoretically relate physical inputs and outputs, economic literature and practice frequently formulate and estimate them using monetary values and expenditures.

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Evidence for · 3

en.wikipedia.org: Cobb–Douglas production function

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en.wikipedia.org: Cobb–Douglas production function. en.wikipedia.org. https://en.wikipedia.org/wiki/Cobb%E2%80%93Douglas_production_function

Defines the standard Cobb-Douglas production function using physical units like labor and capital.

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doi.org: The Estimation of Production Functions with Monetary Values

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doi.org: The Estimation of Production Functions with Monetary Values. doi.org. https://doi.org/10.2139/ssrn.4687937

Notes that in practice, production functions are estimated using monetary values for output and capital.

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ar5iv.labs.arxiv.org: [1711.10031] Constructive Identification of Heterogeneous Elasticities in the Cobb-Douglas Production Function

Recorded source metadata

ar5iv.labs.arxiv.org: [1711.10031] Constructive Identification of Heterogeneous Elasticities in the Cobb-Douglas Production Function. ar5iv.labs.arxiv.org. https://ar5iv.labs.arxiv.org/html/1711.10031

Shows that input costs and cost shares are used in identifying elasticities in Cobb-Douglas functions.

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first checked01 Aug 2026

judged → SUPPORTED · 7501 Aug 2026

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