In my research, I found negative coefficient for the intercept of the equation. How can I interpret it? Moreover, I tried to predict dependent variable with this equation. So, Log(-15) is not be calculated. How can I estimate it?
Trinh Quang Thoai
Hi. In Cobb-Douglas function. You have Log(-15) that mean: Log(-15) = e^(-15) = 1/e^15.
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Olegs Krasnopjorovs
Intercept in Cobb-Douglas production function has no interpretation.
Technically, it reflects initial level of A (total factor productivity), but A is just (a black box) an index.
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