Cobb Douglas: Capital and Labor Shares in the United States

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The COBB-DOUGLAS Production Function The Cobb-Douglas production function is a good

The COBB-DOUGLAS Production Function

The Cobb-Douglas production function is a good

approximation to the U.S. Economy because the share of GDP that is appropriated by capitalists is CONSTANT over the long run. In fact, it is fairly close to 30%.
The share appropriated by workers is also constant at about 70%.
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