| Detailed description |
It is often useful to compare how well different economic growth functions fit the same historical data. And, when comparing among options for economic growth functions (CES, Cobb-Douglas (C-D), LINEX, etc.) it is useful to estimate statistical properties of parameters. But, the fits need to be accomplished on equal grounds.
The canonical versions of C-D and LINEX production functions do not include a gamma pre-multiplier term. (Another way to think of this is that the canonical versions of C-D and LINEX assume gamma = 1.0.) One way to obtain a fair comparison is to fit CES with the gamma pre-multiplier term forced to 1.0. However, it is currently not possible to force gamma = 1.0 in the cesEst function of micEconCES.
Would it be possible to add an option to force gamma = 1.0 in micEconCES? |
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