Nonjointness and Scope Economies in the Multiproduct Symmetric Generalized McFadden Cost Function

Kenneth Stewart

No 709, Econometrics Working Papers from Department of Economics, University of Victoria

Abstract: The multiproduct symmetric generalized McFadden cost function is increasingly prominent in empirical production analysis. Researchers should be aware that the scope for imposing and testing nonjointness in this model is limited. In the general version of the model, nonjointness requires the nontestable maintained hypothesis of similar (in a sense we define) single-output production technologies, a maintained hypothesis for which there is not normally any basis. The apparent imposition and testing of nonjointness must be qualified accordingly. In restricted versions of the model involving separability or constant returns that are often of interest in applied work,nonjointness is precluded.

Keywords: Nonjointness; multiproduct cost function (search for similar items in EconPapers)
JEL-codes: C50 D24 (search for similar items in EconPapers)
Pages: 14 pages
Date: 2007-12-16
Note: ISSN 1485-6441
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.uvic.ca/socialsciences/economics/_asse ... ometrics/ewp0709.pdf (application/pdf)

Related works:
Journal Article: Non-jointness and scope economies in the multiproduct symmetric generalized McFadden cost function (2009)
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:vic:vicewp:0709

Access Statistics for this paper

More papers in Econometrics Working Papers from Department of Economics, University of Victoria PO Box 1700, STN CSC, Victoria, BC, Canada, V8W 2Y2. Contact information at EDIRC.
Bibliographic data for series maintained by Kali Moon (econdept@uvic.ca).