Estimation of Returns to Scale and the Elasticity of Substitution
journal contributionposted on 01.11.1977 by G. S. Maddala, Joseph B. Kadane
Any type of content formally published in an academic journal, usually following a peer-review process.
This paper concerns itself with the following problem: Suppose the true production function is of the CES type with constant returns to scale. If we fit an unrestricted Cobb-Douglas production function instead, what is the nature of the bias in the estimate of the returns to scale parameter?