micEcon (version 0.1-3)

snqProfitEla: Elasticities of SNQ Profit function

Description

Calculates the Price Elasticities of a Symmetric Normalized Quadratic (SNQ) profit function.

Usage

snqProfitEla(  beta, prices, quant, weights )

Arguments

beta

matrix of estimated $\beta$ coefficients.

prices

vector of netput prices at which the elasticities should be calculated.

quant

vector of netput quantities at which the elasticities should be calculated.

weights

vector of weights of prices used for normalization.

See Also

snqProfitEst.

Examples

# just a stupid simple example
   snqProfitEla( matrix(101:109,3,3), c(1,1,1), c(1,-1,-1), c(0.4,0.3,0.3) )

   # now with real data
   data( germanFarms )
   germanFarms$qOutput   <- germanFarms$vOutput   / germanFarms$pOutput
   germanFarms$qVarInput <- -germanFarms$vVarInput / germanFarms$pVarInput
   germanFarms$qLabor    <- -germanFarms$qLabor
   germanFarms$time      <- c( 0:19 )
   pNames <- c( "pOutput", "pVarInput", "pLabor" )
   qNames <- c( "qOutput", "qVarInput", "qLabor" )

   estResult <- snqProfitEst( pNames, qNames, c("land","time"), data=germanFarms )

   estResult$ela  # price elasticities at mean prices and mean quantities

   # price elasticities at the last observation (1994/95)
   snqProfitEla( estResult$coef$beta, estResult$estData[ 20, pNames ],
      estResult$estData[ 20, qNames ], estResult$weights )