# Cobb Douglas Production Function

## Definition

### Health Economics

The Cobb-Douglas production function has the form:

*Y = AK*^{a}L^{b},where

*Y*is the output rate*A*, a and b are positive constants;*A*is a variable broadly representing 'technology' and*K*and*L*are capital and labour services respectively. If there are constant returns to scale, then a + b = 1. With increasing/decreasing returns to scale the sum is >1 and <1 respectively. Named after the US mathematician Charles W. Cobb (1875-1949) and the US economist Paul H. Douglas (1892-1976).