The Treatment of Non-essential Inputs in a Cobb-douglas Technology - Isidro Soloaga - Google Books

https://books.google.de/books?id=8K4uPXIw1EkC&pg=PA2&lpg=PA2&dq=cobb+douglas+anwendung&source=bl&ots=4GfMOzHPUk&sig=EBXxe2rWTefq

One problem when estimating a Cobb-Douglas production function with micro data is how to deal with the observations that show positive output but do not use some of the inputs. As the log of zero is not defined one standard procedure is to arbitrarily…