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 Logquadratic 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, inputoutput 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 Logquadratic 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 

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:  10. Mar 2014 16:06 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/53987 