Economicfag here!
If you are estimating, using econometrics, the Cobb-Douglas function would you use Nominal GDP or Real GDP?
Im pretty sure that I should use the real GDP, but... inflation affects the amount of people working (phillips curve) and inflation affects investment, so im not sure wich GDP use...
Let´s discuss about it
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Huh?
buy the dip son, you are talking so strange
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>he thinks economics has anything to do with business and finance
...
economics is retarded
If I use real GDP I get the constant positive and significative but if I use real GDP I get a negative and not significative constant... The weird part is that parameter of labour is a least 2 times bigger than capital ... D:
oh I get it now. So if real GDP is positive then becky will give me sum fuk, but if I use real GDP which is negative, chad gives me sum fuk?
Is this a real question? It depends on what you're trying to determine - you answered your own question. Are you trying to make meaningful year-over-year comparisons about production, or do you want to factor in inflation?
I have almost exclusively used real values. Comparing nominal numbers is almost useless in most settings.
t. Actual degree in this hyperliberal jewery.
buy ETH
Ok, thanks ... because there is this guy telling me that using real GDP is stupid, he told me his arguments and i decide to give him a chance ... but you are right ...
Does any author says the importance of using real GDP in the equation?
When is Cobb-Douglas ICO???
>ICO
what is ICO?
I mean, I could make the case that using real GDP is a more effective way of isolating the impact of marginal labor...
But without other independent variables in the model, you could easily ask what else had explanatory power. Technology? Maybe there's a fancy new widget-making robot.
Regulatory climate? Maybe widgets were outlawed and demand collapsed.
>Not knowing what ICO is
Are you sure economics is the right major for you ? Maybe try something easier, like gender studies.
If I had to cite someone, I would use Barro. This is literally the top result on Google Scholar.
He talks about plugging in real GDP in an effort to isolate the impact of government spending (a popular topic of debate, obviously), so it isn't exactly unheard of. In my work, which is all in the field of comparative economic policy, I use real GDP almost exclusively.
dash.harvard.edu
English is not my native language so interpreting acronyms is not always easy ... So ICO means International Coffee Organization? xD
>So ICO means International Coffee Organization? xD
It ain't no bubble yet.
Inclined Coefficient of Order. Widely used in economics to distinguish
Thx!
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