micEcon (version 0.4-0)

snqProfitFixEla: Fixed Factor Elasticities of SNQ Profit function

Description

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

Usage

snqProfitFixEla( delta, gamma, quant, fix, weights,
   scalingFactors = rep( 1, length( weights ) ) )

Arguments

delta

matrix of estimated $\delta$ coefficients.

gamma

matrix of estimated $\gamma$ 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).

See Also

snqProfitEst and snqProfitEla.

Examples

# 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
   data( germanFarms )
   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 )