translogCostEst function

Estimate a translog Cost Function

Estimate a translog cost function.

NOTE: this function is still under development and incomplete!

translogCostEst( cName, yName, pNames, data, fNames = NULL, 
      shifterNames = NULL, dataLogged = FALSE, homPrice = TRUE, ... )

Arguments

• cName: a string containing the name of the variable for total cost.

• yName: a string containing the name of the variable for the total output quantity.

• pNames: a vector of strings containing the names of the input prices.

• data: data frame containing the data (possibly a panel data frame created with pdata.frame).

• fNames: a vector of strings containing the names of fixed inputs.

• shifterNames: a vector of strings containing the names of the independent variables that should be included as shifters only (not in quadratic or interaction terms).

• dataLogged: logical. Are the values in data already logged?

• homPrice: logical. Should homogeneity of degree one in prices be imposed?

• ...: further arguments are passed to lm

  or plm.

Returns

a list of class translogCostEst containing following objects: - est: the object returned by lm

or `plm`.

• nExog: length of argument xNames.

• nShifter: length of argument shifterNames.

• residuals: residuals.

• fitted: fitted values.

• coef: vector of all coefficients.

• coefCov: covariance matrix of all coefficients.

• r2: $R^2$ value.

• r2bar: adjusted $R^2$ value.

• nObs: number of observations.

• model.matrix: the model matrix.

• call: the matched call.

• cName: argument cName.

• yName: argument yName.

• pNames: argument pNames.

• fNames: argument fNames.

• shifterNames: argument shifterNames.

• dataLogged: argument dataLogged.

• homPrice: argument homPrice.

See Also

translogEst

and quadFuncEst.

Author(s)

Arne Henningsen

Examples

data( germanFarms )
   # output quantity:
   germanFarms$qOutput <- germanFarms$vOutput / germanFarms$pOutput
   # value of labor input
   germanFarms$vLabor <- germanFarms$pLabor + germanFarms$qLabor
   # total variable cost
   germanFarms$cost <- germanFarms$vLabor + germanFarms$vVarInput
   # a time trend to account for technical progress:
   germanFarms$time <- c(1:20)

   # estimate a translog cost function
   estResult <- translogCostEst( cName = "cost", yName = "qOutput", 
      pNames = c( "pLabor", "pVarInput" ), fNames = "land",
      shifterNames = "time", data = germanFarms, homPrice = FALSE )

   summary( estResult$est )