Cobb-Douglas simulation: United States and Mexico

This paper aims to simulate total factor productivity, following the original proposal made by Cobb and Douglas (1928).Estimates with annual frequency are computed for the United States during two periods, i.e. 1899-1992 and 1933-2019.In the case of Mexico, estimates are computed for the 1993-2015 period.An income distribution in favor of capital in recent decades is found both for the United States and México.Capital share has grown in the United States from 25% in 1899-1922 to 89% in 1993-2019, while for Mexico it has been 82% for 1993-2015.Functional income distribution requires close monitoring.