A Generalized Constant Elasticity of Substitution Production Function Model and Its Application

Abstract

The constant elasticity of substitution production function describes the relationship between production results and production factors in the technological production process. The common production factors include capital and labor. In order to comprehensively reflect the input-output relationship, this paper generalizes the model and adds factors including energy, consumption, and import and export. With respect to estimating the parameters of the model, the paper proposes a high-precision and high-speed nonlinear regression method. The constant elasticity of substitution production function model is mainly used to calculate the contribution rates of economic growth factors, and this paper proposes a scientific and reliable calculating method. The final section of the paper proposes an empirical analysis of the contribution rates of Chinese economic growth factors.