Cobb-Douglas: Meaning (information, definition, explanation, facts)

The Cobb-Douglas functional form of production functions in economics is widely used to represent the relationship of an output to inputs.

The form is estimated as a linear relationship using the following expression

loge(O) = a0 +	∑	ailoge(Ii)
	i

where

• O = Output
• I_i = Inputs
• a_i = model coefficients

It was developed Paul Douglas and Richard Cobb.

It has been generalized in the translog functional form.