Cobb Douglas Production in The Volterra Integral Equation

Abstract

The study aims to identify production function equation between labor and capital into the first order Volterra Integral. This research find that in the case of cooperative in Indonesia, first, the labor did not correlate with output of the production. Second, the Volterra integral equation can be developed only with capital and output variables by including the Kernel factor which includes capital in the equity and loan or liability elements. However, the object of research is only the type of cooperative business, even though all cooperatives registered in the government are used. Other type of business can be applied. Practical implication of this research is human resource development needs to be improved because it does not appear to be correlated with the output or performance of the cooperative. Value of this research, first, labor is not correlated with output. Second, this research has produced the Cobb Douglas equation formula with the Volterra Integral as the novelty of this paper.