IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

The CDET Profit Function: Could it generate a Parsimonious Agricultural Sector Model?

  • Hess, Sebastian
  • Surry, Yves R.

While the single- output Constant Difference of Elasticities (CDE) cost function has been applied several times, its profit counterpart called “the Constant Difference of Elasticities of Transformation” (CDET) profit frontier has not yet been applied econometrically. It is an indirect, implicit, non-homothetic and non-separable frontier that may be viewed as more flexible than the commonly used CES and Cobb-Douglas specifications, while demanding less parameters to be estimated than fully flexible functional forms commonly do. We therefore introduce the CDET profit function and illustrate its potential usefulness as a parsimonious econometric model of agricultural production in Switzerland. Results indicate plausible elasticities and a satisfactory fit to the data; however, successful estimation requires that certain theoretical characteristics of the CDET are exactly obeyed.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://purl.umn.edu/114539
Download Restriction: no

Paper provided by European Association of Agricultural Economists in its series 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland with number 114539.

as
in new window

Length:
Date of creation: 2011
Date of revision:
Handle: RePEc:ags:eaae11:114539
Contact details of provider: Web page: http://www.eaae.org
Email:


More information through EDIRC

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.:

as in new window
  1. Perroni, Carlo & Rutherford, Thomas F, 1998. "A Comparison of the Performance of Flexible Functional Forms for Use in Applied General Equilibrium Modelling," Computational Economics, Society for Computational Economics, vol. 11(3), pages 245-63, June.
  2. Griffin, Ronald C. & Montgomery, John M. & Rister, M. Edward, 1987. "Selecting Functional Form In Production Function Analysis," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 12(02), December.
  3. Hanoch, Giora, 1978. "Polar Functions with Constant Two Factors - One Price Elasticities," Histoy of Economic Thought Chapters, in: Fuss, Melvyn & McFadden, Daniel (ed.), Production Economics: A Dual Approach to Theory and Applications, volume 1, chapter 6 McMaster University Archive for the History of Economic Thought.
  4. Barnett, William A. & Lee, Yul W. & Wolfe, Michael, 1987. "The global properties of the two minflex Laurent flexible functional forms," Journal of Econometrics, Elsevier, vol. 36(3), pages 281-298, November.
  5. Hanoch, Giora, 1975. "Production and Demand Models with Direct or Indirect Implicit Additivity," Econometrica, Econometric Society, vol. 43(3), pages 395-419, May.
  6. Yves Surry & Nadine Herrard & Yves Le Roux, 2003. "Modelling trade in processed food products: an econometric investigation for France," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 30(4), pages 571-571, December.
  7. Santos Silva, J.M.C & Tenreyro, Silvana, 2005. "The Log of Gravity," CEPR Discussion Papers 5311, C.E.P.R. Discussion Papers.
  8. Yves Surry & Nadine Herrard, 2002. "Modelling trade in processed food products: an econometric investigation for France," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(1), pages 1-28, March.
  9. Hanoch, Giora, 1978. "Symmetric Duality and Polar Production Functions," Histoy of Economic Thought Chapters, in: Fuss, Melvyn & McFadden, Daniel (ed.), Production Economics: A Dual Approach to Theory and Applications, volume 1, chapter 2 McMaster University Archive for the History of Economic Thought.
  10. Fare, Rolf & Mitchell, Thomas M, 1989. " A Family Tree of Linearly Homogeneous Production Functions," Scandinavian Journal of Economics, Wiley Blackwell, vol. 91(4), pages 749-57.
  11. Y. Surry, 1993. "The Constant Difference Of Elasticities Function With Applications To The Ec Animal Feed Sector," Journal of Agricultural Economics, Wiley Blackwell, vol. 44(1), pages 110-125.
  12. Arne Henningsen & Jeff D. Hamann, . "systemfit: A Package for Estimating Systems of Simultaneous Equations in R," Journal of Statistical Software, American Statistical Association, vol. 23(i04).
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ags:eaae11:114539. 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: (AgEcon Search)

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.