translogProdFuncMargCost function

Marginal Costs of Translog Production Function

Calculate the marginal costs of the output from a translog production function.

translogProdFuncMargCost( yName, xNames, wNames, data, coef,
   dataLogged = FALSE )

Arguments

• yName: a single character string containing the name of the output quantity.

• xNames: a vector of strings containing the names of the input quantities.

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

• data: dataframe containing the data.

• coef: vector containing all coefficients: if there are n inputs in xNames, the n+1 alpha coefficients must have names a_0, , a_n

  and the n*(n+1)/2 beta coefficients must have names b_1_1, , b_1_n, , b_n_n

  (only the elements of the upper right triangle of the beta matrix are directly obtained from coef; the elements of the lower left triangle are obtained by assuming symmetry of the beta matrix).

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

Returns

A vector containing the marginal costs of producing the output.

See Also

translogEst, translogCalc, translogDeriv, translogEla and translogCostEst.

Author(s)

Arne Henningsen and Geraldine Henningsen

Examples

data( germanFarms )
   # output quantity:
   germanFarms$qOutput <- germanFarms$vOutput / germanFarms$pOutput
   # quantity of variable inputs
   germanFarms$qVarInput <- germanFarms$vVarInput / germanFarms$pVarInput
   # a time trend to account for technical progress:
   germanFarms$time <- c(1:20)

   # generate (artificial) prices
   germanFarms$pLand <- 200 + 15 * germanFarms$time
   germanFarms$pTime <- 1

   # estimate a single-output translog production function
   estResult <- translogEst( "qOutput", c( "qLabor", "land", "qVarInput", "time" ),
      germanFarms )

   # compute the marginal costs of producing the output
   margCost <- translogProdFuncMargCost( yName = "qOutput",
      xNames = c( "qLabor", "land", "qVarInput", "time" ),
      wNames = c( "pLabor", "pLand", "pVarInput", "pTime" ),
      data = germanFarms, coef = coef( estResult ) )