Cobb-Douglas production functions can be formulated using expenditures rather than physical units
the verdict
SUPPORTED
the evidence backs this
confidence 75/100
While production functions theoretically relate physical inputs and outputs, economic literature and practice frequently formulate and estimate them using monetary values and expenditures.
Evidence for · 3
en.wikipedia.org: Cobb–Douglas production function
cited by 0
Defines the standard Cobb-Douglas production function using physical units like labor and capital.
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More for · 2
doi.org: The Estimation of Production Functions with Monetary Values
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Notes that in practice, production functions are estimated using monetary values for output and capital.
ar5iv.labs.arxiv.org: [1711.10031] Constructive Identification of Heterogeneous Elasticities in the Cobb-Douglas Production Function
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Shows that input costs and cost shares are used in identifying elasticities in Cobb-Douglas functions.