Let an endogenous production function be represented by a distribution of production capacities by labor intensity. The paper presents a model for constructing the endogenous production function of a region. The parameters of this function were identified indirectly by comparing calculations using a microeconomic model with statistical time series of macro indicators. Before that time such calculations for a single-product model were made for different countries. The economy of a region is usually more open than the economy of the country. Many goods and even intermediate products are imported and exported from other regions of the country. Numerical experiments on identifying the parameters of the production function for Moscow economy are presented here.

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Identification of Endogenous Production Function for a Region

  • Nicholas Olenev

摘要

Let an endogenous production function be represented by a distribution of production capacities by labor intensity. The paper presents a model for constructing the endogenous production function of a region. The parameters of this function were identified indirectly by comparing calculations using a microeconomic model with statistical time series of macro indicators. Before that time such calculations for a single-product model were made for different countries. The economy of a region is usually more open than the economy of the country. Many goods and even intermediate products are imported and exported from other regions of the country. Numerical experiments on identifying the parameters of the production function for Moscow economy are presented here.