EconPapers    
Economics at your fingertips  
 

An Optimization Procedure for Estimating the Stock of Capital: Application to Ten Production Sectors of Dubai

Belaid Rettab, Ton Kwaak and Azzeddine Azzam

Regional and Sectoral Economic Studies, 2010, vol. 10, issue 1

Abstract: This paper develops and optimization procedure for estimating the capital stock using time series data on GDP, labor, and gross fixed capital formation. By minimizing the gap between observed and attainable GDP, subject to the constraint that capital grows according to the perpetual inventory formula, and GDP is related to employment and the capital stock through the Cobb-Douglas production function with constant returns to scale; the optimization procedure yields estimates of the capital stock, the production function parameters, the rate of capital retirement and depreciation, and the rate of total productivity growth.

Keywords: Stock of Capital; Production Sectora; Dubai; MENA countries; UAE (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.usc.es/economet/reviews/eers1018.pdf
No.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eaa:eerese:v:10:y2010:i:10_8

Ordering information: This journal article can be ordered from
http://www.usc.es/economet/info.htm
mcarmen.guisan@usc.es

Access Statistics for this article

More articles in Regional and Sectoral Economic Studies from Euro-American Association of Economic Development
Bibliographic data for series maintained by M. Carmen Guisan (mcarmen.guisan@usc.es).

 
Page updated 2024-12-28
Handle: RePEc:eaa:eerese:v:10:y2010:i:10_8