The Cobb-Douglas Production Function and Political Economy
17 Pages Posted: 8 Feb 2010 Last revised: 1 Apr 2013
Date Written: March 30, 2013
Abstract
In classical and Marxian political economy economic advancement takes place in stages of development. These stages are characterized by different functional distributions of income. In this paper we show that the Cobb-Douglas Production Function is the only production function which has the property of a constant functional distribution of income of the factors of production. Furthermore it is argued that an aggregate production function is not appropriate to analysing macro-economic processes of a capitalist economy. But it is a very useful tool in the hands of a socialist planning authority.
Keywords: political economy, classical economics, Marxian economics, socialist economics, aggregate production function, functional distribution of income, Cobb -Douglas Production function, stages of economic development, Historical Materialism
JEL Classification: B12, B14, B51, E25, O11, O20, P16, P21
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
The Resurgence of Growth in the Late 1990s: Is Information Technology the Story?
-
Does the "New Economy" Measure Up to the Great Inventions of the Past?
-
Energy Efficiency, User Cost Changes, and the Measurement of Durable Goods Prices
-
Information Technology and the U.S. Productivity Revival: What Do the Industry Data Say?
-
Computing Productivity: Firm-Level Evidence
By Erik Brynjolfsson and Lorin M. Hitt
-
Economic Growth in the OECD Area: Recent Trends at the Aggregate and Sectoral Level
By Stefano Scarpetta, Andrea Bassanini, ...