Profit maximization is an important issue to the firms that pursue the largest economic profit possible. In this paper, we consider the profit-maximization problem with the known CobbDouglas production function. Its equivalent geometric programming form is given. Then due to the presence of uncertainties in real world modeling, we have assumed interval uncertainties on the model parameters. The...

b) Consider the Dornbusch-Fischer-Samuelson model of a two country Ricardian world with a continuum of goods. Call the countries US, Europe (E); index the goods by z ; let denote the labor requirement per unit output in each country, and order the goods so that: Œ 0 1 , A z A z U E b g b g , d z dz bb g < 0, where b z A z A z E U b g b g b g d ∫ i . Assume preferences are CobbDouglas and intern...

Comparisons of well-being across heterogenous households necessitate that households' incomes are adjusted for differences in size and composition: equivalence scales arecommonly used to achieve this objective.Equivalence scales with constant elasticity with respect to family size have been argued to provide a good approximation to a large variety of scales (see, e.g., B. Buhmann, L. Rainwater,...

Software-as-a-service (SaaS) is a relatively new software delivery business model and has been one of the fastest growing segments of the information technology industry in recent years. In this study, we investigate the relationship between the SaaS software delivery model and the productivity of software vendors. We explore scale economies of pure-SaaS firms, non-SaaS firms, and mixed-SaaS fi...

This paper provides a solution to the stability puzzle (Evans and McGough [11]): indeterminacy almost always implies expectational unstability in reduced-form real business cycle (RBC) models. After relaxing the restrictions on the magnitude of capital externalities with CobbDouglas technology, we nd regions for joint indeterminacy and E-stability in the following cases that i) the felicity fun...

W use the under-recognized income accounting identity to provide an important theoretical basis for using the Cobb-Douglas production function in IT productivity analyses. Within the income accounting identity we partition capital into non-IT and IT capital and analytically derive an accounting identity (AI)-based CobbDouglas form that both nests the three-input Cobb-Douglas and provides additi...

The study on the links between strategy, structure and performance has been for long time a fundamental and highly important research topic for the management researchers and practitioners. In this direction this paper presents a ‘holistic’ empirical investigation of the whole network of relations between business strategy (at a first level), information and communication technologies (ICT) inv...

This paper surveys the empirical and theoretical literature on macroeconomic production functions and assesses whether the constant elasticity of substitution (CES) or the CobbDouglas specification is more appropriate for use in the CBO’s macroeconomic forecasts. The Cobb-Douglas’s major strengths are its ease of use and its seemingly good empirical fit across many data sets. Unfortunately, the...

The present paper seeks to deal with the issue of technical and economic efficiency of rice producers in the Kou valley, located in the region of the high basins in the western part of Burkina Faso. The stochastic frontier approach was used to estimate the production function, from a CobbDouglas stochastic frontier function and its dual which allow the estimation of the technical, allocative an...

This paper cons ide rs the following generalization of the We be r plant location probl em: the plant 's output leve l is fix ed , and its levels of input from it s supply point s, as we ll as its location , are among th e decis io n variabl es_ Hurter and W ende ll (J. Reg. Sci. , 1972) s ho wed th at thi s problem ad mits a kind of separabilit y when the plant' s production fun ction li es in...