Page 96 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.70, # 1, 2013, pp. 77-96

Note that the evaluated results of the CES function for economies of

Azerbaijan shows that that substitution elasticity between the factors (capital and

labour) is less than one. This means that there is lack of experienced and qualified

labour force for utilization production facilities.

References

[1] A.G.Granberg «Model for the socialist economy», Moscow., ”Economics”, 1988.
[2] Arrow K.J., Chenery H., Minhas B. and Solow R.M. - Capital-Labor Subatitution and

Economic Efficienty, the Review of Economics and Statistics, 439(1961).
[3] G.V.Kleiner «Production functions », Мoscow.: 1981.

[4] G.J.Imanov, Y.H.Hasanli “The social-economic models of Azerbaijan: macro-
economic analysis”, Elm, 2001, p 248.

[5] Kmenta, J. (1967) “On the Estimation of the CES Production Function,”
International Economic Review, vol. 8, pp. 180-189.

[6] Kubabiva M, M. Tabata, S.Tabata, S. Khasebe, –«Mathematics based Economics on personal
computer ». Moscow, 1991, (translation from Japanese)

[7] Kmenta, J. (1967) “On the Estimation of the CES Production Function,”
International Economic Review, vol. 8, pp. 180-189.

[8] Martin L.Weitzman “Soviet Post-war Economic Growth and Capital – Labor Substitution”,

American Economic Review, Sept.1970.
[9] Matthieu Lemoine, Gian Luigi Mazzi, Paola Monperrus-Veroni, Frédéric Reyne. A new

production function estimate of the euro area output gap//Article first published online:
23 DEC 2009. DOI: 10.1002/for.1157

[10] MATHCAD 6.0 PLUS. - ”Finance, engineering and scientific calculations in Windows 95”.
/translation from English to Russian.-Moscow., Publishing «Filinğ»,1996. p 712.

[11] Mishra, SK (2006): A Note on Numerical Estimation of Sato’s Two-Level CES Production
Function, Online at http://mpra.ub.uni-muenchen.de/1019/ MPRA Paper No. 1019, posted

4. December 2006

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