In this paper a timesaving method is proposed for maximizing likelihood functions when the parameter space is subject to nonlinear constraints, expressible as second order polynomials. The suggested approach is especially attractive when dealing with systems with many parameters.

By means of a new type of production function - the WDI function - an examination has been made of the production structure in thirteen branches of Swedish manufacturing industry. The function used which is the same in all thirteen branches, allows for variable elasticity of substitution and...