The Econometric SocietyEdited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262
Econometrica: Jul, 1968, Volume 36, Issue 3
https://doi.org/0012-9682(196807/10)36:3/4<464:TIAEOC>2.0.CO;2-X
p. 464-472
Arthur S. Goldberger
For empirical implementation of the Cobb-Douglas function, it is customary to append a multiplicative lognormal disturbance and fit a linear regression in the logarithmic variables. When this is done, attention is shifted (apparently unwittingly) to the conditional median from the conditional mean which is ordinarily the prime target of study. The customary procedure may be modified to provide minimum variance unbiased estimation of the conditional median or conditional mean.
