Analysis of the Methodology of Constructing a Production Function Using Quality Criteria

Author(s): Skrynkovskyy R. M.¹, Yuzevych V. M.², Kataev A. V.³, Pawlowski G.⁴^*, Protsiuk T. B.⁵

Affiliation(s):
¹ Lviv University of Business and Law, 99 Kulparkіvska St., 79021 Lviv, Ukraine;
²Karpenko Physico-Mechanical Institute of the NAS of Ukraine, 5 Naukova St., 79060 Lviv, Ukraine;
³Kharkiv Institute of Trade and Economics of Kyiv National University of Trade and Economics, 8 Otakara Yarosha St., 61045 Kharkiv, Ukraine;
⁴Zaklad Handlowo-Uslugowy BHP”, 17 Kostrzynska St., 69-113 Gorzyca, Poland;
⁵Academy of Financial Monitoring, 24 Biloruska St., 04050 Kyiv, Ukraine

^*Corresponding Author’s Address: [email protected]

Issue: Volume 6; Issue 1 (2019)

Dates:
Paper received: July 20, 2018
The final version of the paper received: December 16, 2018
Paper accepted online: December 20, 2018

Citation:
Skrynkovskyy, R. M., Yuzevych, V. M., Kataev, A. V., Pawlowski, G., Protsiuk, T. B. (2019). Analysis of the methodology of constructing a production function using quality criteria. Journal of Engineering Sciences, Vol. 6(1), pp. B1-B5, doi: 10.21272/jes.2019.6(1).b1

DOI: 10.21272/jes.2019.6(1).b1

Research Area: MANUFACTURING ENGINEERING: Technical Regulations and Metrological Support

Abstract. In the article to forecast the trends of development of the state’s industry (for example, Ukraine), a method for evaluating the parameters included in the classical Cobb-Douglas formula is developed. On the basis of the computational experiment it was established that if the values of the production function Y are close to the numerical values and the deviation between them does not exceed 3.7 %, then for approximation of Y in the industry for small time periods, it makes no sense to complicate the set of its parameters and coefficients. For forecasting the values of Y_i (Y_i Î Y) we have evaluated the parameters that are included in the classical Cobb-Douglas formula. To improve the methodology for estimating the coefficients included in the Cobb-Douglas type formula, new variants of the multiplicative and additive quality criteria and for the Ukrainian industry are proposed, based on the analytical data for 2010–2017, the evaluation of the relevant criteria was carried out.

Keywords: production function, Cobb-Douglas function, quality criteria, industry, industrial products.

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