Aggregate economic growth is studied using Cobb-Douglas production functions. For Taiwan, new capital stock and human capital data are constructed. We find a constant labor exponent of about 0.7, assuming constant returns; a constant rate of increase in total factor productivity (TFP) of about...

This chapter discusses that the standard linear regression model has been an attractive model to use in econometrics. If econometricians can uncover stable economic relations that satisfy at least approximately the assumptions of this model, they deserve the credit and the convenience of using...