Application of production function framework for the integral assessment and forecast of industry development in a region

摘要

The article describes the main directions of applying the production functions as a tool of analysis, assessment and forecast of production processes in the economic systems of different levels. Using the production function framework, the authors present the studies of regularities and tendencies in the development of the industry branches in Astrakhan region (Russia). The application of the Cobb-Douglas production function for the analysis of industry at the regional level is reasoned. Relying on the analysis, the authors draw the conclusion on a limited application of the Cobb-Douglas function because of the high level of indicator aggregation and prove the direction of the production function modification, enabling to consider the characteristics of fixed assets of industry in the conditions of the contemporary information restrictions. The proposed modification of the Cobb-Douglas production function is tested by the authors for the series of dynamics of the main indicators, characterizing the industry of Astrakhan region.