library(snreg)
data("banks07")
head(banks07)
# Translog cost function specification
spe.tl <- log(TC) ~ (log(Y1) + log(Y2) + log(W1) + log(W2))^2 +
I(0.5 * log(Y1)^2) + I(0.5 * log(Y2)^2) +
I(0.5 * log(W1)^2) + I(0.5 * log(W2)^2)
# Specification 1: homoskedastic noise and skewness
formSV <- NULL # variance equation; constant variance
formSK <- NULL # skewness equation; constant skewness
m1 <- snreg(
formula = spe.tl,
data = banks07,
ln.var.v = formSV,
skew.v = formSK
)
summary(m1)
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