A general procedure to recover the marginal products of a cost minimizing firm

Citation
P. Ouellette et S. Vigeant, A general procedure to recover the marginal products of a cost minimizing firm, J PROD ANAL, 14(2), 2000, pp. 143-162
Citations number
11
Categorie Soggetti
Economics
Journal title
JOURNAL OF PRODUCTIVITY ANALYSIS
ISSN journal
0895562X → ACNP
Volume
14
Issue
2
Year of publication
2000
Pages
143 - 162
Database
ISI
SICI code
0895-562X(200009)14:2<143:AGPTRT>2.0.ZU;2-Q
Abstract
In this paper we develop a new method, based on generalized inverse, to rec over the first derivatives of the production function. This allows us to re trieve returns to scale, technological progress and, in a dynamic setting, a measure of the adjustment cost. The method is general and systematic and it applies in cases where the traditional method does not. It is especially relevant when examining dynamic models or regulated firms.