Parameter Estimation of a Mixed Production Function Model Based on Improved Firefly Algorithm and Model Application

2018 ◽  
Vol 6 (4) ◽  
pp. 336-348
Author(s):  
Maolin Cheng ◽  
Yun Han
Keyword(s):  
Economic Growth ◽  
Parameter Estimation ◽  
Production Function ◽  
Firefly Algorithm ◽  
Elasticity Of Substitution ◽  
Function Model ◽  
Constant Elasticity ◽  
Factors Affecting ◽  
Constant Elasticity Of Substitution ◽  
Improved Firefly Algorithm

Abstract In the analysis on economic growth factors, researchers usually use the production function model to calculate and measure influencing factors’ contribution rates to economic growth. Common production functions include the CD (Cobb-Douglas) production function, the CES (Constant Elasticity of Substitution) production function, the VES (Variable Elasticity of Substitution) production function, and so on. In consideration of the diversity and complementarity of models, the paper combines the CD production function with the CES production function and then proposes a mixed production function. With regard to the parameter estimation of model, the paper gives an improved firefly algorithm with the high precision and a fast rate of convergence. With regard to the calculation of factors’ contribution rates, traditional methods generally have big errors and are not applicable to complicated models, so the paper offers a new method which can calculate contribution rates scientifically. Finally, the paper calculates the contribution rates of factors affecting Chinese economic growth and gets a good result.

scholarly journals A Generalized Constant Elasticity of Substitution Production Function Model and Its Application

2016 ◽  
Vol 4 (3) ◽  
pp. 269-279
Author(s):  
Maolin Cheng
Keyword(s):  
Economic Growth ◽  
Growth Factors ◽  
Production Function ◽  
High Speed ◽  
Elasticity Of Substitution ◽  
Function Model ◽  
Constant Elasticity ◽  
Constant Elasticity Of Substitution ◽  
Production Factors ◽  
Economic Growth Factors

AbstractThe constant elasticity of substitution production function describes the relationship between production results and production factors in the technological production process. The common production factors include capital and labor. In order to comprehensively reflect the input-output relationship, this paper generalizes the model and adds factors including energy, consumption, and import and export. With respect to estimating the parameters of the model, the paper proposes a high-precision and high-speed nonlinear regression method. The constant elasticity of substitution production function model is mainly used to calculate the contribution rates of economic growth factors, and this paper proposes a scientific and reliable calculating method. The final section of the paper proposes an empirical analysis of the contribution rates of Chinese economic growth factors.

A Modified CES Production Function Model and Its Application in Calculating the Contribution Rate of Energy and Other Influencing Factors to Economic Growth

2019 ◽  
Vol 7 (2) ◽  
pp. 161-172 ◽  
Author(s):  
Maolin Cheng ◽  
Guojun Shi ◽  
Yun Han
Keyword(s):  
Economic Growth ◽  
Production Function ◽  
Influencing Factors ◽  
Elasticity Of Substitution ◽  
Contribution Rate ◽  
Function Model ◽  
Constant Elasticity ◽  
Modified Model ◽  
Constant Elasticity Of Substitution ◽  
Economic Growth Factors

Abstract In the analysis of economic growth factors, the constant elasticity of substitution (CES) production function model is used to calculate the contribution rates of influencing factors to economic growth. However, the traditional CES production function model fails to consider the staged characteristics of economic growth. Therefore, this study provides a modified model of the CES production function. With regard to its application, a new method for calculating the contribution rates of energy and other influencing factors to economic growth is proposed using a modified CES production function model. This work concludes by calculating the contribution rates of Chinese energy and other influencing factors to economic growth.

scholarly journals A Grey CES Production Function Model and Its Application in Calculating the Contribution Rate of Economic Growth Factors

Complexity ◽  
2019 ◽  
Vol 2019 ◽  
pp. 1-8 ◽  
Author(s):  
Maolin Cheng
Keyword(s):  
Economic Growth ◽  
Growth Factors ◽  
Production Function ◽  
Calculation Method ◽  
Function Model ◽  
Constant Elasticity ◽  
Constant Elasticity Of Substitution ◽  
Growth Laws ◽  
Random Fluctuations ◽  
Economic Growth Factors

In analyses of economic growth factors, people generally use the CES (Constant Elasticity of Substitution) production function model to calculate the contribution rates of the factors that influence economic growth. However, the traditional CES function model that is built directly from economic data often shows apparent errors in parameter estimation due to data fluctuations. Such a model also may cause a negative calculation of the contribution rates of economic growth factors, or it may create abnormal fluctuations for some periods, and thus it fails to meet economic growth laws. In this paper, we propose a grey CES production function that can eliminate the random fluctuations of data and make the estimated parameters more reasonable, and this model can reflect the relationship between inputs and outputs more accurately. With regard to model application, the paper puts forward a scientific calculation method to avoid the calculation deviations caused by the substitution of difference equation for a differential equation with Solow’s formula. With the grey two-level nested CES production function model and the calculation method proposed, the paper makes an empirical analysis of the contribution rates of factors that influence China’s economic growth.

scholarly journals Macroeconomic Growth in Vietnam Transitioned to Market: An Unrestricted VES Framework

Economies ◽  
2020 ◽  
Vol 8 (3) ◽  
pp. 58 ◽  
Author(s):  
Nguyen Ngoc Thach
Keyword(s):  
Economic Growth ◽  
High Speed ◽  
Transition Economy ◽  
Bayes Factor ◽  
Elasticity Of Substitution ◽  
Mcmc Methods ◽  
Constant Elasticity ◽  
Constant Elasticity Of Substitution ◽  
Labour Share ◽  
The Relationship

The Vietnamese economy has increased at high speed over the transformation decades; however, most recent studies on the economic growth of this country used the Cobb-Douglas or CES (Constant Elasticity of Substitution) production functions, which are unable to explore the relationship between the elasticity of capital-labour substitution and development process, and hence, are not relevant to accessing a dynamic economic system. For that reason, this study is conducted to specify an unrestricted VES (Variable Elasticity of Substitution) production function in a one-sector growth model of Vietnam, highlighted by two characteristics: successful transition from plan to market and rapid progress. The VES is given preference over the CES and the Cobb-Douglas having the elasticity of substitution between capital and labour varying with economic development. By employing a Bayesian nonlinear regression through MCMC methods, the study reported the following findings: (1) the above-unity variable elasticity of capital-labour substitution in an aggregate unrestricted VES function specified for Vietnam shows that the model generates the possibility of endogenous economic growth; (2) the capital share tends to increase, while the labour share faces a downward trend along with the development of Vietnam; (3) the VES is empirically proven through a Bayes factor test to be superior to the CES and Cobb-Douglas for analysis of the growth process of Vietnam, an emerging transition economy.

CONSTANT-ELASTICITY-OF-SUBSTITUTION PRODUCTION FUNCTION

2008 ◽  
Vol 12 (5) ◽  
pp. 694-701 ◽  
Author(s):  
Hideki Nakamura ◽  
Masakatsu Nakamura
Keyword(s):  
Production Function ◽  
Capital Accumulation ◽  
Specific Form ◽  
Production Functions ◽  
Elasticity Of Substitution ◽  
Intermediate Goods ◽  
Constant Elasticity ◽  
Constant Elasticity Of Substitution ◽  
Douglas Production Function

We consider endogenous changes of inputs from labor to capital in the production of intermediate goods, i.e., a form of mechanization. We derive complementary relationships between capital accumulation and mechanization by assuming a Cobb–Douglas production function for the production of final goods from intermediate goods. A constant-elasticity-of-substitution production function in which the elasticity of substitution exceeds unity can be endogenously derived as the envelope of Cobb–Douglas production functions when the efficiency of inputs is assumed in a specific form. The difficulty of mechanization represents the elasticity of substitution.

scholarly journals Intermetropolitan Comparisons Of Production Function

2011 ◽  
Vol 3 (2) ◽  
pp. 112
Author(s):  
Martin Williams ◽  
Tuan Ton-That
Keyword(s):  
Production Function ◽  
Production Technology ◽  
Returns To Scale ◽  
Elasticity Of Substitution ◽  
Constant Elasticity ◽  
Constant Elasticity Of Substitution ◽  
Different Levels ◽  
Variable Returns To Scale ◽  
Inputs And Outputs

A nonhomogeneous production is used to study the features of the production technology across U.S. cities. We compute marginal productivities and scale elasticities for different levels of inputs and outputs. The form of the production function allows variable returns to scale. We can also test the Cobb-Douglas and constant elasticity of substitution forms within the nonhomogeneous specification. Conclusions are drawn concerning returns to scale across cities of different sizes.

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