The Normalized Quadratic Expenditure Function

Walter Diewert and Kevin Fox

Economics working papers from Vancouver School of Economics

Abstract: A concise introduction to the Normalized Quadratic expenditure or cost function is provided so that the interested reader will have the necessary information to understand and use this functional form. The Normalized Quadratic is an attractive functional form for use in empirical applications as correct curvature can be imposed in a parsimonious way without losing the desirable property of flexibility. We believe it is unique in this regard. Topics covered included the problem of cardinalizing utility, the modeling of nonhomothetic preferences, the use of spline functions to achieve greater flexibility and the use of a “semiflexible†approach to make it feasible to estimate systems of equations with a large number of commodities.

Keywords: Normalized Quadratic; expenditure function; flexible functional forms; elasticities. (search for similar items in EconPapers)
JEL-codes: D11 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2009-01-09, Revised 2009-01-09
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.econ.ubc.ca/diewert/dp0904.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

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:ubc:bricol:erwin_diewert-2009-3

Access Statistics for this paper

More papers in Economics working papers from Vancouver School of Economics
Bibliographic data for series maintained by Maureen Chin ().