ABSTRACT

Here A(t) is a time dependent 'scale parameter' which supposedly denotes a technological progress variable and a and ß are further parameters affecting the shape of the relationship between the dependent and independent variables.7 Many other specific forms o f production functions have been discussed theoretically and examined econometrically. These include 'homogeneous' functions like the Cobb-Douglas (which share the property that, for any proportionate change in inputs, output changes by that same proportion raised to some power) and others where the assumption of homogeneity is relaxed (see Bairam, 1994 and Chapter 1). With the exception of the Linear Programming interpretation of production functions, little thought appears to have been given to the basic measurement question of whether mathematical expressions such as that described in (2 ) actually do map real empirical properties into the number system.