Elasticity of substitution between labor, capital and energy in turkey: translog production function approach

In addition to the traditional production factors, one of the most needed production input in the production process is energy. In particular, it is rather high the use of traditional or primary energy sources in the production process. The aim of this study is to predict the translog production function including energy consumption for Turkey. For the analysis, it was utilized GDP, labor, capital, natural gas, oil and coal data for 1982-2014 period. The prediction was made by the Ridge Regression method. Findings show that the elasticity of substitution between inputs is distributed at 1 level. Elasticities of output followed a positive course throughout the period covered.