An Econometric Analysis of a Production Function for New Zealand

Kam Leong Szeto ()
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Kam Leong Szeto: New Zealand Treasury, https://treasury.govt.nz/

No 01/31, Treasury Working Paper Series from New Zealand Treasury

Abstract: Using the capital stock series recently released by Statistics New Zealand, two approaches have been employed to estimate a production function. The first approach is based on the estimation of a constant elasticity of substitution (CES) production function with a value added form. The second approach is based on a nested CES function. Using the nested structure, we allow imports as an intermediate input in the production block. The estimated results reveal that the data rejects the Cobb-Douglas specification and the use of the value added form is not justifiable.

Keywords: CES production function; Cobb-Douglas specification (search for similar items in EconPapers)
JEL-codes: C51 E23 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2001
New Economics Papers: this item is included in nep-eff
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Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:nzt:nztwps:01/31

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