IMPOSING CURVATURE RESTRICTIONS ON A TRANSLOG COST FUNCTION USING A MARKOV CHAIN MONTE CARLO SIMULATION APPROACH

Using Kansas Farm data from 1973 to 1998, curvature restrictions are imposed on a translog cost function. Using uninformative priors with indicator functions representing distribution and inequality constraints, a Markov Chain Monte Carlo Simulation method is used to estimate parameters and check curvature at each point. Comparison is made to the Cholesky factorization method commonly used with the normalized quadratic functional form.

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Year of publication:	2003
Authors:	Mulik, Kranti ; Featherstone, Allen M. ; Marsh, Thomas L.
Institutions:	Agricultural and Applied Economics Association - AAEA
Subject:	Research Methods/ Statistical Methods

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Extent:	application/pdf
Series:	2003 Annual meeting, July 27-30, Montreal, Canada.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series 2003 Annual meeting, July 27-30, Montreal, Canada Number 22038
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005330732