Testing cost vs. profit function
The empirical literature on estimation of production technology mostly focuses on estimation of dual cost functions. Estimation of a profit function is not that common. Here, we formally test whether the production technology should be represented by a cost or profit function. We also derive elasticities associated with the long-run profit function from the estimated cost function.
Year of publication: |
2007
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Authors: | Asche, Frank ; Kumbhakar, Subal C. ; TveterÄs, Ragnar |
Published in: |
Applied Economics Letters. - Taylor & Francis Journals, ISSN 1350-4851. - Vol. 14.2007, 10, p. 715-718
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Publisher: |
Taylor & Francis Journals |
Saved in:
freely available
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