micEcon (version 0.6-0)

translogCostEst: Estimate a translog Cost Function

Description

Estimate a translog cost function.

NOTE: this function is still under development and incomplete!

Usage

translogCostEst( cName, yName, pNames, data, fNames = NULL, 
      shifterNames = NULL, dataLogged = FALSE, homPrice = TRUE, ...)

Arguments

cName

a string containing the name of the variable for total cost.

yName

a string containing the name of the variable for the total output quantity.

pNames

a vector of strings containing the names of the input prices.

data

data frame containing the data (possibly a panel data frame created with plm.data).

fNames

a vector of strings containing the names of fixed inputs.

shifterNames

a vector of strings containing the names of the independent variables that should be included as shifters only (not in quadratic or interaction terms).

dataLogged

logical. Are the values in data already logged?

homPrice

logical. Should homogeneity of degree one in prices be imposed?

...

further arguments are passed to lm or plm.

Value

• a list of class translogCostEst containing following objects:
• est
  the object returned by lm or plm.
• nExog
  length of argument xNames.
• nShifter
  length of argument shifterNames.
• residuals
  residuals.
• fitted
  fitted values.
• coef
  vector of all coefficients.
• coefCov
  covariance matrix of all coefficients.
• r2
  $R^2$ value.
• r2bar
  adjusted $R^2$ value.
• nObs
  number of observations.
• model.matrix
  the model matrix.
• call
  the matched call.
• cName
  argument cName.
• yName
  argument yName.
• pNames
  argument pNames.
• fNames
  argument fNames.
• shifterNames
  argument shifterNames.
• dataLogged
  argument dataLogged.
• homPrice
  argument homPrice.

See Also

translogEst and quadFuncEst.

Examples

data( germanFarms )
   # output quantity:
   germanFarms$qOutput <- germanFarms$vOutput / germanFarms$pOutput
   # value of labor input
   germanFarms$vLabor <- germanFarms$pLabor + germanFarms$qLabor
   # total variable cost
   germanFarms$cost <- germanFarms$vLabor + germanFarms$vVarInput
   # a time trend to account for technical progress:
   germanFarms$time <- c(1:20)

   # estimate a translog cost function
   estResult <- translogCostEst( cName = "cost", yName = "qOutput", 
      pNames = c( "pLabor", "pVarInput" ), fNames = "land",
      shifterNames = "time", data = germanFarms, homPrice = FALSE )

   summary( estResult$est )