Application of the Cobb-Douglas model to the use of information resources by industry in Croatia, Yugoslavia

摘要

The Cobb-Douglas model applied to value added as a function of labor, capital, purchases of information services, and purchases of other input is used to investigate the use of information by the industry and mining sector in Croatia, Yugoslavia. It is demonstrated that the raw data set directly available from the Bureau of Statistics of Croatia cannot be used as a starting point for the analysis without additional selection rules. Some problems related to the increasing economic difficulties in Croatia over the past few years, which appear to be relevant to the application of the Cobb-Douglas model in general, are described. Application of the Cobb-Douglas model to the selected data set indicates that there is demonstrable evidence that the manufacturing industry of Croatia is using a less than optimal amount of information resources. The necessity to improve the statistical analysis of relevant data is also demonstrated.