Baccar, Sourour
(1995):
*Reliability of the Translog Cost Function : Some Theory & an Application to the Demand of Energy in French Manufacturing.*

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## Abstract

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,(ii) on their ability to provide plausible estimates of economic and technological characteristics, and finally, (iii) on their reliability of fit for input shares, input-output ratios and unit cost. The most important result is that the standard form exhibits some weakness in fitting. We show via a series of experiments that those imprecisions are due to a lack of flexibility of the Log-quadratic form. Therefore, our results suggest that caveats should be attached to several previous studies, and care must be taken by future researchers who use such models.

Item Type: | MPRA Paper |
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Original Title: | Reliability of the Translog Cost Function : Some Theory & an Application to the Demand of Energy in French Manufacturing |

English Title: | Reliability of the Translog Cost Function : Some Theory & an Application to the Demand of Energy in French Manufacturing |

Language: | English |

Keywords: | translog cost function, reliability of fit, flexibility, energy demand, technical change modelling. |

Subjects: | C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C51 - Model Construction and Estimation C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C52 - Model Evaluation, Validation, and Selection C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C54 - Quantitative Policy Modeling L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights |

Item ID: | 53987 |

Depositing User: | Prof Sourour Baccar |

Date Deposited: | 08 Mar 2014 14:30 |

Last Modified: | 07 Oct 2019 20:04 |

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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/53987 |