COBB-DOUGLAS INDUSTRIAL FUNCTION AND MANAGING ECONOMIC AND TECHNOLOGICAL DEVELOPMENT
https://doi.org/10.21686/2413-2829-2018-2-105-114
Abstract
The article deals with the issue of theoretical substantiation and practical importance of industrial functions, in particular Cobb-Douglas function. It is known that lately Cobb-Douglas function is not used in practice to forecast economic development, as it describes the reality in a poor way. When this function was deduced a number of methodological mistakes were made. The authors mention the use of costs and result related to different periods of time as a said mistake. Another methodological mistake, according to the authors is incorrect division of variables after finding a numerical value of power. The most serious drawback of industrial functions is the fact that they are deduced only on the basis of statistic data of the past in the absence of any explanations about the current processes in production sphere. The article runs about working out the concept aimed at resolving practical tasks of managing the development of big economic and technological systems. The development of such methods is possible only on the basis of knowledge about laws of functioning and designing economic and technological systems but not only statistic information about the past.
About the Authors
Vyacheslav N. Usim
Plekhanov Russian University of Economics
Russian Federation
Russian Federation
Doctor of Sciences, Professor of the Department for Industrial Economics
36 Stremyanny Lane, Moscow, 117997
Vladimir S. Filippov
Plekhanov Russian University of Economics
Russian Federation
Russian Federation
PhD, Assistant Professor of the Department for Restaurant Business
36 Stremyanny Lane, Moscow, 117997
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Review
For citations:
Usim V.N., Filippov V.S. COBB-DOUGLAS INDUSTRIAL FUNCTION AND MANAGING ECONOMIC AND TECHNOLOGICAL DEVELOPMENT. Vestnik of the Plekhanov Russian University of Economics. 2018;(2):105-114. (In Russ.) https://doi.org/10.21686/2413-2829-2018-2-105-114
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