The lack of identification of short run run effects in a system of regression equations consisting of a dynamic translog cost function and cost share equations derived from this cost function is shown.

The lack of identification of short run run effects in a system of regression equations consisting of a dynamic translog cost function and cost share equations derived from this cost function is shown.

This paper uses a flexible functional form approach to account for the direct and indirect effects of public capital on the private sector. Furthermore we explicitly incorporate energy in the production function. We use the duality between production and cost functions and base our investigation...