We examined three cases of Schully model [1] [2] for Mongolian economy. In\nthe first case, we consider the production function with constant returns to\nscale. In the second case, we employ an econometric model for the production\nfunction with none constant return to scale without constraints on parameters\nof elasticities. Finally, the constrained regression model has been\nimplemented by solving a convex minimization problem over a convex set.\nAlso, we have proved that Schully production function namely, â??U shape\nfunctionâ? in the literature [1] [2] [3] in fact is concave function under some\nassumptions.
Loading....