Nonlinear Two-Stage Least Squares Estimation of CES Production Functions Applied to the Canadian Manufacturing Industries, 1926-1939, 1946-1967

T HE present study applies the two-stage least squares principle to a nonlinear least squares estimation method; the nonlinear least squares method is based on Marquardt's maximum neighborhood method. The method is applied to the CES production functions of the Canadian manufacturing industries. Section II explains the application of the nonlinear least squares method to the CES production functions; in section III the estimated results are presented; section IV gives some qualifications to the results obtained in the present study.