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We investigate the behaviour of three flexible forms of the cost Function: the Translog, which is the most used in empirical analyses, Generalized Leontief and Symmetric Generalized McFadden, which both have also become popular. Their performances are evaluated by their abilities (i) to respect...
Persistent link: https://www.econbiz.de/10014213286
We investigate the behavior of three versions of the translog cost function: the standard Log-quadratic version and two nonlinear versions with exponential and linear technical progress biases, respectively. Their performances are assessed according to three criteria: (i) on theoretical ground,...
Persistent link: https://www.econbiz.de/10012751187
In this paper I concern the problem of properly specifying the structure of technology of French manufacturing industry, when capital is treated as quasi-fixed input. However instead of choosing a single functional form as an approximation to the variable cost function, modified versions of...
Persistent link: https://www.econbiz.de/10012769120
In this paper we report results of a rather successful attempt to provide evidence on the substitution possibilities between capital, labour, and energy in the three branches of French manufacturing industry. In order to assess the sensitivity of results to the choice of the functional form and...
Persistent link: https://www.econbiz.de/10012769278