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 Subject : Cobb Douglas function.. 09/21/2018 12:37:21 PM 
Muhamad Bahri
Posts: 1
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Dear,

1) Are there any SD paper(s) using the Cobb-Douglas function
to estimate GDP?
I specifically look at where K and L may be replaced by land or water.

2). If someone replace L with runoff water instead of Labour,
is that correct in SD modeling ?

My opininon, replacing labour with runoff water is not correct as runoff is a flow. Labour is possible replaced by water demand (stock) instead of runoff water.
I want to hear anyone's opinion on this issue
 Subject : Re:Cobb Douglas function.. 10/24/2018 07:34:02 PM 
Mr. Leonard Malczynski
Posts: 39
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In a Cobb Douglas there are no units specified but it is implied that K and L are stocks, but stocks available within a specific time period, e.g. K and L available per month.

Cobb-Douglas has some nice mathematical properties and comes close to estimating output. All these functions are obviously abstractions and they hopefully have some operational reference to the real world.

Operationally, what does runoff water have to do with the output? It seems that the variable runoff water is not an input to a production process unless that process transforms runoff water with capital. If this is an agricultural production problem please see E. O Heady, Agricultural Production Functions.
 
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