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On the Estimation of Factor Substitution in the Translog Model

Authors: Chung, Jae Wan;

On the Estimation of Factor Substitution in the Translog Model

Abstract

The conventional approach to computation of the Allen partial elasticities of substitution (AES) in the framewo rk of the translog production function requires to estimate a set of multivariate input-demand functions. This paper proposes an alternati ve way to compute the AESs, requiring only to estimate elasticities v ia a truncated, single cost-share equation. Value-added separability and pairwise factor substitutabilities have both been validated under the nonlinear restriction. The achievements of the alternative appro ach are by and large consistent with those of the conventional approa ch and with those in some of the existing studies. Copyright 1987 by MIT Press.

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Powered by OpenAIRE graph
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
21
Top 10%
Top 10%
Average
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