Analysis of the Methodology of Constructing a Production Function Using Quality Criteria

In the article to forecast the trends of development of the state’s industry (for example, Ukraine), a method for evaluating the parameters included in the classical Cobb-Douglas formula is developed. On the basis of the computational experiment it was established that if the values of the productio...

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Bibliographic Details
Published in:	Z͡H︡urnal inz͡h︡enernykh nauk Vol. 6; no. 1; pp. b1 - b5
Main Authors:	Skrynkovskyy, R.M., Yuzevych, V.M., Kataev, A.V., Pawlowski, G., Protsiuk, T.B.
Format:	Journal Article
Language:	English
Published:	Sumy State University 01-06-2019
Subjects:	Cobb-Douglas function industrial products industry production function quality criteria
Online Access:	Get full text
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Summary:	In the article to forecast the trends of development of the state’s industry (for example, Ukraine), a method for evaluating the parameters included in the classical Cobb-Douglas formula is developed. On the basis of the computational experiment it was established that if the values of the production function Y are close to the numerical values and the deviation between them does not exceed 3.7 %, then for approximation of Y in the industry for small time periods, it makes no sense to complicate the set of its parameters and coefficients. For forecasting the values of Yi (Yi Î Y) we have evaluated the parameters that are included in the classical Cobb-Douglas formula. To improve the methodology for estimating the coefficients included in the Cobb-Douglas type formula, new variants of the multiplicative and additive quality criteria and for the Ukrainian industry are proposed, based on the analytical data for 2010–2017, the evaluation of the relevant criteria was carried out.
ISSN:	2312-2498 2414-9381
DOI:	10.21272/jes.2019.6(1).b1