Fixed Factor Elasticities of SNQ Profit function
Calculates the Fixed Factor Elasticities of a Symmetric Normalized Quadratic (SNQ) profit function.
snqProfitFixEla( delta, gamma, quant, fix, weights, scalingFactors = rep( 1, length( weights ) ) )
delta
: matrix of estimated coefficients.gamma
: matrix of estimated coefficients.quant
: vector of netput quantities at which the elasticities should be calculated.fix
: vector of quantities of fixed factors at which the elasticities should be calculated.weights
: vector of weights of prices used for normalization.scalingFactors
: factors to scale prices (and quantities).A fixed factor elasticity is defined as
Thus, e.g. means that if the quantity of fixed factor j () increases by 1%, the quantity of netput i () will increase by 0.5%.
snqProfitEst
and snqProfitEla
.
Arne Henningsen
# just a stupid simple example snqProfitFixEla( matrix(1:6/6,3,2 ), matrix(4:1/4,2 ), c(1,1,1), c(1,1), c(0.4,0.3,0.3) ) # now with real data 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$time <- c( 0:19 ) priceNames <- c( "pOutput", "pVarInput", "pLabor" ) quantNames <- c( "qOutput", "qVarInput", "qLabor" ) fixNames <- c( "land", "time" ) estResult <- snqProfitEst( priceNames, quantNames, fixNames, data=germanFarms ) estResult$fixEla # price elasticities at mean quantities of netputs # and fixed factors # fixed factor elasticities at the last observation (1994/95) snqProfitFixEla( estResult$coef$delta, estResult$coef$gamma, estResult$data[ 20, quantNames ], estResult$data[ 20, fixNames ], estResult$weights, estResult$scalingFactors ) }