On the Production Function for Italy
| RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI - 2010 - 4
In this paper, we assess the ability of the Cobb-Douglas framework to match the empirical evidence
for Italy. While the growth accounting approach requires the validity of this functional form
and of its parameters, we conduct econometric analysis on a panel of regions for the years 2000-
2006 and suggest (i) an alternative specification and (ii) a twofold time series data construction, under
which the Cobb-Douglas framework appears to yield the most credible and well-specified formulation
of the Italian production function.
Key words: Production function, Total Factor Productivity, Capital stocks.
JEL Classification: O47, E23.