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Economic growth in the USSR,Hungary, and East and West Germany
Authors:Norman E Cameron
Institution:Department of Economics, University of Manitoba, Winnipeg R3T 2N2, Canada
Abstract:The extensive research on Soviet production functions is here extended to three different economies for the post-war, post-recovery period. Many different forms of CES and Cobb-Douglas function are tested. Estimates for West Germany are plausible and well behaved. Those for East Germany and Hungary are not even plausible. Results for the USSR are plausible, but inspection of residuals via isoquant maps suggests that the whole period is not homogeneous. Further tests suggest a structural change around 1965 as one possibility; the change involves faster technical change and an elasticity of substitution after 1965 not significantly different from unity.
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