In quot;Ten Cheaper Spadesquot;, Richard Miller argues that the analysis of production and cost presented in the principles and intermediate microeconomics courses does not accurately describe manufacturing reality and is not supported by empirical estimation of cost curves. He proposes an...

We use Italian firm-level data to investigate the impact of trade openness on the distribution of firms across marginal cost levels. In so doing, we implement a procedure that allows us to control not only for the standard transmission bias identified in firm-level TFP regressions but also for...

In this paper we have built a theoretical model using a normalized quadratic cost system to obtain expressions for actual input demand and cost as functions of three components: frontier, allocative and technical inefficiency. We have used the shadow prices approach in the line of exact...

We propose an Exact Affine Stone Index (EASI) demand system, which delivers the convenient properties of Hicksian demands in an empirically simple framework. Like the Almost Ideal Demand (AID) system, EASI budget shares are linear in parameters given real expenditures. However, unlike AID, EASI...

A growing number of local public transport (LPT) companies diversify their production lines by providing a large set of services. We investigate the cost structure of a sample of LPT companies operating in Italy in order to assess the presence and the magnitude of scope economies. We split the...