PREDICTION OF GROSS DOMESTIC PRODUCT (GDP) BY USING GREY COBB-DOUGLAS PRODUCTION FUNCTION

Year 2018, , 18 - 23, 01.09.2018

Omer Onalan , Hulya Basegmez

https://doi.org/10.17261/Pressacademia.2018.850

Abstract

Purpose- In this paper, we investigate the Grey Cobb-Douglas production model applicable to estimation of economical indicators.

Methodology- In the multi regression model, explanatory variables for estimation of future value of indicatiors is estimated by using Grey Cobb-Douglas model.

Findings- GDP is an indicator for economic growth. We are used the annual data of United State of American economy for 1951 to 2008 and estimated the 2009-2018 years. The sum of the contributions of factors is 1.497 and greater than one, so it shows increasing return to scale.

Conclusion- The percentage of the increase in GDP is greater than that of the increase in capital stock and labor.

Keywords

Cobb-Douglas production function, economic growth

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