MODELING ALLOCATIVE INEFFICIENCY IN A TRANSLOG COST FUNCTION AND COSTSHARE EQUATIONS - AN EXACT RELATIONSHIP

Authors
KUMBHAKAR SC
Citation
Sc. Kumbhakar, MODELING ALLOCATIVE INEFFICIENCY IN A TRANSLOG COST FUNCTION AND COSTSHARE EQUATIONS - AN EXACT RELATIONSHIP, Journal of econometrics, 76(1-2), 1997, pp. 351-356
Citations number
14
Categorie Soggetti
Social Sciences, Mathematical Methods",Economics,"Mathematical, Methods, Social Sciences","Mathematics, Miscellaneous
Journal title
Journal of econometrics → ACNP
ISSN journal
03044076
Volume
76
Issue
1-2
Year of publication
1997
Pages
351 - 356
Database
ISI
SICI code
0304-4076(1997)76:1-2<351:MAIIAT>2.0.ZU;2-D
Abstract
Previous studies using translog cost function used ad hoc specificatio ns to model allocative inefficiency in the cost function and the cost share equations. This paper uses a translog cost function and establis hes an exact relationship between allocative inefficiency in the cost share equations and in the cost function. Such an exact relationship w as believed to be possible only for self dual production functions.