snqProfitCalc function

Calculations with the SNQ Profit function

Calculations with the SNQ Profit function

Calculation of netput quantities and profit with the Symmetric Normalized Quadratic (SNQ) Profit function.

snqProfitCalc( priceNames, fixNames, data, weights, scalingFactors = rep( 1, length( weights ) ), coef, quantNames = NULL, form = 0 )

Arguments

  • priceNames: a vector of strings containing the names of netput prices.
  • fixNames: an optional vector of strings containing the names of the quantities of (quasi-)fix inputs.
  • data: a data frame containing the data.
  • weights: vector of weights of the prices for normalization.
  • quantNames: optional vector of strings containing the names of netput quantities.
  • scalingFactors: factors to scale prices (and quantities).
  • coef: a list containing the coefficients alpha, beta, delta and gamma.
  • form: the functional form to be estimated (see snqProfitEst).

Returns

a data frame: the first n columns are the netput quantities, the last column is the profit.

References

Diewert, W.E. and T.J. Wales (1987) Flexible functional forms and global curvature conditions. Econometrica, 55, p. 43-68.

Diewert, W.E. and T.J. Wales (1992) Quadratic Spline Models for Producer's Supply and Demand Functions. International Economic Review, 33, p. 705-722.

Kohli, U.R. (1993) A symmetric normalized quadratic GNP function and the US demand for imports and supply of exports. International Economic Review, 34, p. 243-255.

See Also

snqProfitEst and snqProfitWeights.

Author(s)

Arne Henningsen

Examples

if( requireNamespace( 'micEcon', quietly = TRUE ) ) { data( germanFarms, package = "micEcon" ) germanFarms$qOutput <- germanFarms$vOutput / germanFarms$pOutput germanFarms$qVarInput <- -germanFarms$vVarInput / germanFarms$pVarInput germanFarms$qLabor <- -germanFarms$qLabor germanFarms$time <- c( 0:19 ) priceNames <- c( "pOutput", "pVarInput", "pLabor" ) quantNames <- c( "qOutput", "qVarInput", "qLabor" ) fixNames <- c( "land", "time" ) estResult <- snqProfitEst( priceNames, quantNames, fixNames, data = germanFarms ) snqProfitCalc( priceNames, fixNames, estResult$data, estResult$weights, estResult$scalingFactors, estResult$coef ) }