The Undead Humbug Production Function
WORKING PAPER
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This paper demonstrates that the Cobb-Douglas function is identically equal to the rules of aggregate accounting with any factor indices and an arbitrary 'human capital' variable thrown in.
It is demonstrated empirically that the term for `total factor productivity' does not show total factor productivity at all, but rather a factor share weighted geometric mean of the pro t rate and the quotient of the wage rate and human capital.