The refined assessment of production function of retail trade in the Russian Federation

The article investigates the production function of retail trade in the Russian Federation as this function can be a basis for the economic and mathematical model of retail trade. Based on the production function, the economic and mathematical model of retail trade reflects the dependence of retail turnover on the significant factors. The stable retail trade defines the sustainable final consumption of the population. Accordingly, the economic and mathematical model of retail trade will allow one to determine the stable environment for retail trade. The author suggests considering such factors of the production function of retail trade as employment, fixed assets, wholesale trade, and import. The period under review is from 2005 to 2015. After data linearization, the author conducts the regression analysis by least squares method. The author refines the multiplication and polynomial equation for building the production function and estimates the generated equation of production function. The study reveals variances between actual data and estimates during the period under review. The author suggests involving other models, in particular, indicates further research priority that is the application of regression differential model.