AbstractThe Cobb-Douglas production function (Cobb and Douglas, 1928) is still today the most ubiquitous form in theoretical and empirical analyses of growth and productivity. The estimation of the parameters of aggregate production functions is central to much of today_s work on growth, technological change, productivity, and labour. Empirical estimates of aggregate production functions are a tool of analysis essential in macroeconomics, and important theoretical constructs, such as potential output, technical change, or the demand for labour, are based on them. It is usually fitted by first linearizing the models through logarithmic transformation and then applying method of least squares (Prajneshu, 2008), but the ordinary least squares (OLS) is not the best estimation method (Kahane , 2001). In statistics and econometrics, more and more attention is paid to techniques that can deal with data containing atypical observations, which can arise from outliers, miscoding, or heterogeneity and no.....