PREDICTION OF GROSS DOMESTIC PRODUCT (GDP) BY USING GREY COBB-DOUGLAS PRODUCTION FUNCTION

Purpose- In this paper, we investigate the Grey Cobb-Douglas production model applicable to estimation of economical indicators. Methodology- In the multi regression model, explanatory variables for estimation of future value of indicatiors is estimated by using Grey Cobb-Douglas model. Findings- GDP is an indicator for economic growth. We are used the annual data of United State of American economy for 1951 to 2008 and estimated the 2009-2018 years. The sum of the contributions of factors is 1.497 and greater than one, so it shows increasing return to scale. Conclusion- The percentage of the increase in GDP is greater than that of the increase in capital stock and labor.