A modified Cobb-Douglas production function model and its application

摘要

In the analysis of economic growth factors, researchers often use the Cobb-Douglas production function model to calculate the contribution rate of various influential factors upon economic growth. However, the traditional Cobb-Douglas production function model fails to consider the influence of policy factors on economic growth at different stages. Therefore, this paper establishes a modified model of the Cobb-Douglas production function. With regard to parameter estimation of the model, this paper proposes an improved simulated annealing algorithm; this method is characterized by high precision and rapid convergence. In terms of calculating the contribution rate of factors, the traditional method has a larger error. Therefore, by utilizing the modified Cobb-Douglas production function model, the paper proposes a new method to calculate the contribution rate of a factor accurately. Finally, the paper empirically analyses the contribution rate of various influential factors to economic growth in China.