This is Cobb

55 Years Later: Why Douglas Merged With McDonnell

Long time coming: Cobb gets 2nd shutout, 10-plus years after 1st

in example 41 we looked at the cobb douglas utility function uxyxay1 a where 0a1 this problem illustrates a few more attributes of that function a calculate the indirect utility function for 36322

In Example 4.1 we looked at the Cobb-Douglas utility function U(x, y)=x^α y^1-α, where 0 ≤α≤1 . This problem illustrates a few more attributes of that function. a. Calculate the indirect utility function for this CobbDouglas case. b. Calculate the expenditure function for this case. c. Show explicitly how the compensation required to offset the effect of an increase in the price of x is related to the size of the exponent a. | Numerade

Cobb-Douglas Production Function | Formula, Equation & Example

Cobb – Douglas Production Function - SlideServe

Suppose that the production function is Cobb-Douglas. (a) Find expressions for k^*, y^*, and c^* as functions of the parameters of the model, s, n, δ, g, and α(b) What is the golden-rule value of k ? (c) What saving rate is needed to yield the golden-rule capital stock? | Numerade