Sunday

March 1, 2015

March 1, 2015

Posted by **joe** on Thursday, February 8, 2007 at 9:55am.

TFP is Total factor Productivity

K is capital stock

L is quantity of labor used

alpha is a paramater around 1/3.

How is value added defined? Why dont intermediate inputs enter this production function?

I presume the exponent on L is (1-alpha). This would make your production function a Cobb-Douglas -- very traditional in econ literature.

Value added is defined by your value added fuction which is determined by a mix of labor and capital inputs.

I'm not sure what you mean by your second question. Are intermediate inputs embodied in your K capital input?

**Answer this Question**

**Related Questions**

Macroeconomics - Manipulation of the Cobb Douglas Equation gives us expression ...

trig - FInd the exact value pf the 6 trig function of alpha Given: point (-2,-6...

Math ( Polynomial ) - This time three questions - 1. If (x^2 - 1 ) is a factor ...

Math ( Polynomial ) - This time three questions - 1. If (x^2 - 1 ) is a factor ...

STOCKS & BONDS - Alpha Corporation has outstanding an issue of preferred stock ...

precal - when solving for all solutions how do I work out this problem: cos4(...

trig - express 20sin theta + 4 cos theta as R sin(theta + alpha) R sin(theta + ...

maths - Given that the roots of 2x^2-4x+5 are alpha and beta,find the value of...

another college math question - Please teach me. I am completely blank with it...

Trigonometry - Find the exactly value of sin2(alpha) if cos(alpha) = 4/5 (alpha ...