A Note on Allen-Uzawa Partial Elasticities of Substitution: The Case of the Translog Cost Function
AbstractThis note provides a useful property of the Allen-Uzawa partials for the translog cost function. It also suggests how the main results extend to any functional form with certain properties. The curvature of the Allen-Uzawa matrix is the same as the curvature of the Hessian matrix. Intuitively, the Allen-Uzawa partials allow for the verification of curvature properties.
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Bibliographic InfoPaper provided by Department of Economics, School of Management and Languages, Heriot Watt University in its series Working Papers with number E03.
Date of creation: 2005
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More information through EDIRC
Elasticity of Substitution; Translog Cost Function; Concavity;
Other versions of this item:
- Atanas Christev & Allen Featherstone, 2009. "A note on Allen-Uzawa partial elasticities of substitution: the case of the translog cost function," Applied Economics Letters, Taylor & Francis Journals, vol. 16(11), pages 1165-1169.
- Christev, Atanas & Featherstone, Allen, 2007. "A Note on Allen-Uzawa Partial Elasticities of Substitution: The Case of the Translog Cost Function," IZA Discussion Papers 2712, Institute for the Study of Labor (IZA).
- C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
- C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
- D20 - Microeconomics - - Production and Organizations - - - General
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- Ryan, David L & Wales, Terence J, 1998. "A Simple Method for Imposing Local Curvature in Some Flexible Consumer-Demand Systems," Journal of Business & Economic Statistics, American Statistical Association, vol. 16(3), pages 331-38, July.
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