Economics at your fingertips  

Choice of the empirical definition of zero in the translog multiproduct cost functional form

Yapo Genevier N’guessan, Allen Featherstone, Oluwarotimi Odeh and Sreedhar Upendram

Applied Economics Letters, 2017, vol. 24, issue 15, 1112-1120

Abstract: The translog cost function is valuable to researchers for empirical analysis in themodelling of indirect cost and profit functions. A flaw of the functional form is in themodelling of zero output values. This study examined the impacts of empirical definition of zero output values on price elasticities, economies of scope and scale, using the translog cost function. Estimation of a system of cost and factor share equations with regularity condition imposed was conducted. Results show that the choice of default values affects policy recommendations.

Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link) (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Choice of the Empirical Definition of Zero in the Translog Multiproduct Cost Functional Form (2005) Downloads
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:

Ordering information: This journal article can be ordered from

DOI: 10.1080/13504851.2016.1259735

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

Page updated 2024-03-31
Handle: RePEc:taf:apeclt:v:24:y:2017:i:15:p:1112-1120