A Monte Carlo Experiment Demonstrating Specifications Bias in Translog Cost Systems

Paul Driscoll and Richard N. Boisvert

No 186345, Staff Papers from Cornell University, Department of Applied Economics and Management

Abstract: A Monte Carlo experiment comparing translog cost and production systems indicates that the cost systems' biased estimates of returns to scale and input substitution elasticity's result from an error in variables problem and a disturbance with non-zero mean. Guidelines for when the cost or production system is more appropriate are suggested

Keywords: Demand; and; Price; Analysis (search for similar items in EconPapers)
Pages: 17
Date: 1986-05
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/186345/files/Cornell-Dyson-sp8609.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:cudasp:186345

DOI: 10.22004/ag.econ.186345

Access Statistics for this paper

More papers in Staff Papers from Cornell University, Department of Applied Economics and Management Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().