New cobb Douglas production function in a DSGE model

General DSGE Modeling
1

Can employ a Cobb-Douglas production function such as follows in a DSGE model:

Y_{t}=A_{t}L_{t}^{\alpha}K_{t}^{\beta}E_{t}^{\delta}H_{t}^{\gamma}

E_{t} is energy in production function
H_{t} is human capital in production function

And we assume that our production function has constant economies of scale property.

in other words we have

\alpha + \beta + \delta + \gamma = 1

2

Typically, there is not restriction on the type of production function you want to use.

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3

Thank you so much professor.