On the Estimation of Factor Substitution in the Translog Model
提出一种仅需估计单一成本份额方程即可计算Allen偏替代弹性的新方法,避免了传统方法需要估计多变量要素需求函数组的复杂过程,并通过非线性约束验证了方法的有效性。
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.