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A derivative-based measure of economies of scope is obtained by exploiting the duality between the shadow cost function and the input distance function. This is a useful measure when the econometric estimation of a cost function is not viable.
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When materials offshoring is measured by estimating imported intermediate inputs, a common assumption used is that an industry’s imports of each input, relative to its total demand, is the same as the economy-wide imports relative to total demand: this is the so-called “import...
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We study a symmetric AIDS expenditure function that allows for variation in the range of goods. Solving for the reservation prices for goods not available, a convenient form for the expenditure function is obtained. This functional form should prove useful in monopolistic competition models were...
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