?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=https%3A%2F%2Fmpra.ub.uni-muenchen.de%2F1019%2F&rft.title=A+Note+on+Numerical+Estimation+of+Sato%E2%80%99s+Two-Level+CES+Production+Function&rft.creator=Mishra%2C+SK&rft.subject=D20+-+General&rft.subject=C61+-+Optimization+Techniques+%3B+Programming+Models+%3B+Dynamic+Analysis&rft.subject=C20+-+General&rft.description=In+this+paper+Sato%E2%80%99s+two-level+CES+production+function+has+been+estimated+by+nonlinear+regression+carried+out+through+five+different+methods+of+optimization%2C+namely%2C+the+Hooke-Jeeves+Pattern+Moves+(HJPM)%2C+the+Hooke-Jeeves-Quasi-Newton+(HJQN)%2C+the+Rosenbrock-Quasi-Newton+(RQN)%2C+the+Differential+Evolution+(DE)+and+the+Repulsive+Particle+Swarm+methods+(RPS).+The+last+two+methods+are+particularly+suited+to+optimization+of+extremely+nonlinear+(often+multimodal)+objective+functions.%0A%0AWhile+data+may+be+containing+outliers%2C+the+method+of+least+squares+has+a+clear+disadvantage+as+it+may+be+pulled+by+extremely+small+or+large+errors.+The+absolute+deviation+estimation+of+parameters+is+more+suitable+in+such+cases.+This+paper+has+made+an+attempt+to+estimation+of+parameters+of+Sato%E2%80%99s+two-level+CES+production+function+by+minimizing+the+sum+of+absolute+errors.+The+minimization+has+been+done+by+the+five+methods+noted+above.+While+the+HJPM+and+the+HJQN+perform+poorly+at+minimizing+the+sum+of+absolute+deviations%2C+the+RQN+performs+much+better.+The+DE+and+the+RPS+perform+very+well+in+estimating+the+parameters.As+an+exercise+on+real+data%2C+the+German+Sector+%22Merket-Determined+Services%22+production+function+has+been+estimated+with+three+inputs%3A+Capital%2C+Labour+and+Energy.+The+Linear+Exponential+(LINEX)+and+Sato's+two-level+specifications+of+the+%22Service+Function%22+have+been+estimated.&rft.date=2006-11-26&rft.type=MPRA+Paper&rft.type=NonPeerReviewed&rft.format=application%2Fpdf&rft.language=en&rft.identifier=https%3A%2F%2Fmpra.ub.uni-muenchen.de%2F1019%2F1%2FMPRA_paper_1019.pdf&rft.identifier=++Mishra%2C+SK++(2006)%3A+A+Note+on+Numerical+Estimation+of+Sato%E2%80%99s+Two-Level+CES+Production+Function.++++&rft.language=en