TY - JOUR
T1 - A non-homothetic globally concave flexible cost function and its application to panel data
AU - Nakamura, Shinichiro
PY - 2001/6
Y1 - 2001/6
N2 - A new non-homothetic globally concave flexible cost function is introduced and applied to a panel of firms in the Japanese paper and pulp industry. This cost function is a mixture of the generalized McFadden form and the generalized Ozaki form due to Nakamura (1990). A generalized index of technical change is used in place of the standard quadratic form of time-trend. The estimated cost function satisfied global concavity, and the symmetry condition of the Slutsky matrix was not rejected. Homotheticity was strongly rejected.
AB - A new non-homothetic globally concave flexible cost function is introduced and applied to a panel of firms in the Japanese paper and pulp industry. This cost function is a mixture of the generalized McFadden form and the generalized Ozaki form due to Nakamura (1990). A generalized index of technical change is used in place of the standard quadratic form of time-trend. The estimated cost function satisfied global concavity, and the symmetry condition of the Slutsky matrix was not rejected. Homotheticity was strongly rejected.
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U2 - 10.1111/1468-5876.00191
DO - 10.1111/1468-5876.00191
M3 - Article
AN - SCOPUS:0035020312
SN - 1352-4739
VL - 52
SP - 208
EP - 223
JO - Japanese Economic Review
JF - Japanese Economic Review
IS - 2
ER -