IDEAS home Printed from https://ideas.repec.org/a/ijb/journl/v17y2018i2p95-112.html
   My bibliography  Save this article

Using Hierarchical Cluster Analysis as a Tool to Fit Aggregate Production Functions

Author

Listed:
  • Rafael Solis

    (Department of ISDS Craig School of Business, California State University, Fresno)

  • K.C. Tseng

    (Department of ISDS Craig School of Business, California State University, Fresno)

Abstract

In this study, we discuss the use of clustering algorithms to group countries based on a set of macroeconomic variables and their effect on the estimation of the parameters of a Cobb-Douglas type production function. The findings suggest that the utilization of clustering methodologies could play an important role when grouping of countries may be needed without adversely affecting the meaning of the parameters of the fitted production functions.

Suggested Citation

  • Rafael Solis & K.C. Tseng, 2018. "Using Hierarchical Cluster Analysis as a Tool to Fit Aggregate Production Functions," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 17(2), pages 95-112, September.
    • Handle: RePEc:ijb:journl:v:17:y:2018:i:2:p:95-112
    as

    Download full text from publisher

    File URL: https://ijbe.fcu.edu.tw/assets/ijbe/past_issue/No.17-2/pdf/vol_17-2-1.pdf
    Download Restriction: no
    File URL: https://ijbe.fcu.edu.tw/assets/ijbe/past_issue/No.17-2/abstract/01.html
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hirschberg, Joseph G. & Maasoumi, Esfandiar & Slottje, Daniel J., 1991. "Cluster analysis for measuring welfare and quality of life across countries," Journal of Econometrics, Elsevier, vol. 50(1-2), pages 131-150, October.
    2. Slottje, Daniel J, 1991. "Measuring the Quality of Life across Countries," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 684-693, November.
    3. Beckmann, Martin J & Sato, Ryuzo, 1969. "Aggregate Production Functions and Types of Technical Progress: A Statistical Analysis," American Economic Review, American Economic Association, vol. 59(1), pages 88-101, March.
    4. Basu, Susanto & Fernald, John G, 1997. "Returns to Scale in U.S. Production: Estimates and Implications," Journal of Political Economy, University of Chicago Press, vol. 105(2), pages 249-283, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sharif N. Ahkam & Khairul Alom, 2019. "Liquidity, Level of Working Capital Investment, and Performance in an Emerging Economy," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 18(3), pages 307-328, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. José Antonio Rodríguez Martín & Juan Dios Jiménez Aguilera & José Antonio Salinas Fernández & José María Martín Martín, 2016. "Millennium Development Goals 4 and 5: Progress in the Least Developed Countries of Asia," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 129(2), pages 489-504, November.
    2. Jesus Perez-Mayo, 2005. "Identifying deprivation profiles in Spain: a new approach," Applied Economics, Taylor & Francis Journals, vol. 37(8), pages 943-955.
    3. Tauhidur Rahman, 2007. "Measuring the well-being across countries," Applied Economics Letters, Taylor & Francis Journals, vol. 14(11), pages 779-783.
    4. José Antonio Rodriguez Martin & Juan Dios Jiménez Aguilera & José María Martín Martín & José Antonio Salinas Fernández, 2018. "Crisis in the Horn of Africa: Measurement of Progress Towards Millennium Development Goals," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 135(2), pages 499-514, January.
    5. Rong, Rong & Houser, Daniel, 2015. "Growing stars: A laboratory analysis of network formation," Journal of Economic Behavior & Organization, Elsevier, vol. 117(C), pages 380-394.
    6. Maria Ana Lugo & Esfandiar Maasoumi, 2008. "Multidimensional Poverty Measures from an Information Theory Perspective," Working Papers 85, ECINEQ, Society for the Study of Economic Inequality.
    7. Keonsup Song, 2008. "An Analysis of The Difference In Korean-Americans’ QOL: A Study of Seattle Area Residents," International Review of Public Administration, Taylor & Francis Journals, vol. 13(2), pages 63-79, September.
    8. Oliviero Carboni & Paolo Russu, 2015. "Assessing Regional Wellbeing in Italy: An Application of Malmquist–DEA and Self-organizing Map Neural Clustering," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 122(3), pages 677-700, July.
    9. Haroon Jamal & Amir Jahan Khan, 2003. "The Changing Profile of Regional Inequality," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 42(2), pages 113-123.
    10. Valérie Berenger & Cuauhtémoc Calderón Villarreal & Franck Celestini, 2009. "Modelling the Distribution of Multidimensional Poverty Scores: Evidence from Mexico," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 24(1), pages 3-34.
    11. Salvatore Greco & Alessio Ishizaka & Menelaos Tasiou & Gianpiero Torrisi, 2019. "On the Methodological Framework of Composite Indices: A Review of the Issues of Weighting, Aggregation, and Robustness," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(1), pages 61-94, January.
    12. Bernhard P. Zaaruka & Johannes W. Fedderke, 2011. "Measuring Institutions: Indicators of Political and Economic Institutions in Namibia: 1884 – 2008," Working Papers 236, Economic Research Southern Africa.
    13. Joseph Gerald Hirschberg & Jeanette Ngaire Lye, 2020. "Grading Journals In Economics: The Abcs Of The Abdc," Journal of Economic Surveys, Wiley Blackwell, vol. 34(4), pages 876-921, September.
    14. Nesson, Erik T. & Robinson, Joshua J., 2015. "An information theory based framework for the measurement of population health," Economics & Human Biology, Elsevier, vol. 17(C), pages 86-103.
    15. AfDB AfDB, 2006. "Working Paper 83 - Are African Countries Richer Than They Are Developed? A Multidimensional Analysis of Well-Being," Working Paper Series 2297, African Development Bank.
    16. Agustí Pérez-Foguet & Ricard Giné Garriga, 2011. "Analyzing Water Poverty in Basins," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 25(14), pages 3595-3612, November.
    17. Matteo Mazziotta & Adriano Pareto, 2019. "Use and Misuse of PCA for Measuring Well-Being," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 142(2), pages 451-476, April.
    18. Andrea Brandolini, 2008. "On applying synthetic indices of multidimensional well-being: health and income inequalities in selected EU countries," Temi di discussione (Economic working papers) 668, Bank of Italy, Economic Research and International Relations Area.
    19. Luis Ayala & Antonio Jurado & Jesús Pérez‐Mayo, 2011. "Income Poverty And Multidimensional Deprivation: Lessons From Cross‐Regional Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 57(1), pages 40-60, March.
    20. Therese Nilsson, 2010. "Health, Wealth and Wisdom: Exploring Multidimensional Inequality in a Developing Country," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 95(2), pages 299-323, January.

    More about this item

    Keywords

    hierarchical clustering; Cobb-Douglas production function; macroeconomics;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ijb:journl:v:17:y:2018:i:2:p:95-112. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Szu-Hsien Ho (email available below). General contact details of provider: https://edirc.repec.org/data/cbfcutw.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.