Empirical applications of the translog cost function often conclude that firms operate at increasing returns to scale …

Empirical applications of the translog cost function often conclude that firms operate at increasing returns to scale …

translog cost function to examine whether there are unexploited economies of scale and scope in the current configuration of …

empirical production analysis, Cobb-Douglas and Translog, are unsuitable for analysing the optimal firm size. We show that the … Translog functional form implies an implausible linear relationship between the (logarithmic) firm size and the elasticity of … nonparametric specification test rejects both the Cobb-Douglas and the Translog functional form, while a recently developed …