Estimation of Zellner-Revankar Production Function Revisited
Zellner and Revankar in their paper “Generalized Production Functions” introduced a production function, which was illustrated by fitting the generalized Cobb-Douglas function to the U.S. data for Transportation Equipment Industry. For estimating the production function, they used a method in which one of the parameters (theta) is repeatedly chosen at the trial basis and other parameters are estimated so as to obtain the global optimum of the likelihood function. We show that this method of Zellner and Revankar (ZR) is caught into a local optimum trap and the estimated parameters reported by ZR are somewhat sub-optimal. Using the Differential Evolution (DE) and the Repulsive Particle Swarm (RPS) methods, we re-estimate the parameters of the ZR production function with data used by ZR and show that our estimates of parameters are better than those of ZR. We also find that the returns to scale do not vary with the size of output in the manner reported by ZR.
Volume (Year): 3 (2007)
Issue (Month): 14 ()
|Contact details of provider:|| |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mishra, SK, 2006. "Global Optimization by Differential Evolution and Particle Swarm Methods: Evaluation on Some Benchmark Functions," MPRA Paper 1005, University Library of Munich, Germany.
- Mishra, SK, 2006. "A Note on Numerical Estimation of Sato’s Two-Level CES Production Function," MPRA Paper 1019, University Library of Munich, Germany, revised 02 Dec 2006.
- Mishra, SK, 2006.
"Estimation of Zellner-Revankar Production Function Revisited,"
1172, University Library of Munich, Germany.
- SK Mishra, 2007. "Estimation of Zellner-Revankar Production Function Revisited," Economics Bulletin, AccessEcon, vol. 3(14), pages 1-7.
- A. Zellner & N. S. Revankar, 1969. "Generalized Production Functions," Review of Economic Studies, Oxford University Press, vol. 36(2), pages 241-250.
When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-06c60008. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.