Econometric Modeling Of The Impact Of Microenvironment On The Level Of Production

Table 1:

Name	The essence
"Leontief " function $y = m i n (\frac{x_{1}}{a_{1}}, \frac{x_{2}}{a_{2}})$ where: y - production results; x1, x2 - factors of production; a_1, a_2 - model parameters.	It is used to simulate deterministic technological systems, most often automated (robotic).
"Cobb-Douglas" function $y = a_{0} x_{1}^{a_{1}} x_{2}^{a_{2}}$	It is used to describe objects with stable performance.
Linear function $y = \sum_{j = 1}^{n} a_{j} x_{j}$	It is used for modeling at the macro level (economy as a whole, type of economic activity, corporation). Assumes output is dependent on a variety of factors.
Function of CES $y = {(a_{1} x_{1}^{a_{2}} + a_{3} x_{2}^{a_{3}})}^{a_{4}}$	It is used when there is no information about the level of resource interchangeability.
Function of LES $y = {x_{1}^{a_{0}} (a_{1} x_{1}^{} + a_{2} x_{2}^{})}^{a_{3}}$	It is used in cases where the substitution of resources depends on their proportions.

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Econometric Modeling Of The Impact Of Microenvironment On The Level Of Production

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