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Anonymous
An easy Cobb Douglas Question 2017-06-15 05:35:59 Post No. 2460476
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An easy Cobb Douglas Question 2017-06-15 05:35:59 Post No. 2460476
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Economicfag here!
If you are estimating, using econometrics, the Cobb-Douglas function would you use Nominal GDP or Real GDP?
Im pretty sure that I should use the real GDP, but... inflation affects the amount of people working (phillips curve) and inflation affects investment, so im not sure wich GDP use...
Let´s discuss about it
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>>2460476
Huh?
buy the dip son, you are talking so strange
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>he thinks economics has anything to do with business and finance
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>>2460476
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economics is retarded
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If I use real GDP I get the constant positive and significative but if I use real GDP I get a negative and not significative constant... The weird part is that parameter of labour is a least 2 times bigger than capital ... D:
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>>2460550
oh I get it now. So if real GDP is positive then becky will give me sum fuk, but if I use real GDP which is negative, chad gives me sum fuk?
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>>2460476
Is this a real question? It depends on what you're trying to determine - you answered your own question. Are you trying to make meaningful year-over-year comparisons about production, or do you want to factor in inflation?
I have almost exclusively used real values. Comparing nominal numbers is almost useless in most settings.
t. Actual degree in this hyperliberal jewery.
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>>2460476
buy ETH
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>>2460598
Ok, thanks ... because there is this guy telling me that using real GDP is stupid, he told me his arguments and i decide to give him a chance ... but you are right ...
Does any author says the importance of using real GDP in the equation?
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>>2460476
When is Cobb-Douglas ICO???
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>>2460705
>ICO
what is ICO?
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>>2460693
I mean, I could make the case that using real GDP is a more effective way of isolating the impact of marginal labor...
But without other independent variables in the model, you could easily ask what else had explanatory power. Technology? Maybe there's a fancy new widget-making robot.
Regulatory climate? Maybe widgets were outlawed and demand collapsed.
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>>2460719
>Not knowing what ICO is
Are you sure economics is the right major for you ? Maybe try something easier, like gender studies.
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>>2460693
If I had to cite someone, I would use Barro. This is literally the top result on Google Scholar.
He talks about plugging in real GDP in an effort to isolate the impact of government spending (a popular topic of debate, obviously), so it isn't exactly unheard of. In my work, which is all in the field of comparative economic policy, I use real GDP almost exclusively.
https://dash.harvard.edu/bitstream/handle/1/3451296/Barro_GovernmentSpending.pdf?..
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>>2460779
English is not my native language so interpreting acronyms is not always easy ... So ICO means International Coffee Organization? xD
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>>2460810
>So ICO means International Coffee Organization? xD
It ain't no bubble yet.
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>>2460719
Inclined Coefficient of Order. Widely used in economics to distinguish
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>>2460923
Thx!
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>>2460476
Thread posts: 21
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Thread images: 9