
Cobb-Douglas functions are highly useful and conveniently simple. They are widely used in microeconomics to illustrate a multitude of economic phenomena and properties. A key characteristic of these functions is that their isoquants are smoothly convex, allowing for continuous substitution along them as the prices of goods or factors change. They are also popular in research, particularly in computable general equilibrium analysis. However, practical references on the generation and use of calibrated Cobb-Douglas functions are scarce. In these notes, we aim to fill that gap.
Cobb-Douglas, Cost functions, Calibrated cost functions
Cobb-Douglas, Cost functions, Calibrated cost functions
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