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Generalized Quadratic Revenue Functions

Author

Listed:
  • Robert G. Chambers
  • Rolf Färe
  • Shawna Grosskopf
  • Michael Vardanyan

Abstract

In this paper we focus on specification of revenue functions in their dual price space. We consider two distance functions, both dual to the revenue function: Shephard output distance function and the directional output distance function, both in price space. The former is multiplicative, satisfying homogeneity, the latter is additive satisfying transitivity. Functional equation methods yield translog specification for the Shephard case and quadratic for the directional case. Monte Carlo evidence suggests that the quadratic specification more precisely represents technology.

Suggested Citation

  • Robert G. Chambers & Rolf Färe & Shawna Grosskopf & Michael Vardanyan, 2008. "Generalized Quadratic Revenue Functions," CESifo Working Paper Series 2404, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_2404
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    References listed on IDEAS

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    Cited by:

    1. Czekaj, Tomasz G., 2015. "Measuring the Technical Efficiency of Farms Producing Environmental Output: Semiparametric Estimation of Multi-output Stochastic Ray Production Frontiers," 2015 Conference, August 9-14, 2015, Milan, Italy 211555, International Association of Agricultural Economists.
    2. repec:eee:ejores:v:262:y:2017:i:1:p:361-369 is not listed on IDEAS
    3. Rolf Färe & Michael Vardanyan, 2016. "A note on parameterizing input distance functions: does the choice of a functional form matter?," Journal of Productivity Analysis, Springer, vol. 45(2), pages 121-130, April.
    4. Tomasz Gerard Czekaj, 2013. "Measuring the Technical Efficiency of Farms Producing Environmental Output: Parametric and Semiparametric Estimation of Multi-output Stochastic Ray Production Frontiers," IFRO Working Paper 2013/21, University of Copenhagen, Department of Food and Resource Economics.
    5. Mateus De Carvalho Reis Neves & Mateus De Carvalho Reis Neves & Felipe De Figueiredo Silva & Carlos Otávio Freitas & Marcelo José Braga, 2018. "The Shadow Price Of Cooperative Membership On Agriculture In The Brazilian South And Southeast Regions," Anais do XLIV Encontro Nacional de Economia [Proceedings of the 44th Brazilian Economics Meeting] 191, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    6. Carlos Otávio De Freitas & Felipe De Figueiredo Silva & Mateus De Carvalho Reis Neves & Marcelo José Braga, 2018. "Technical Assistance Support Effect On Brazilian Agricultural Performance," Anais do XLIV Encontro Nacional de Economia [Proceedings of the 44th Brazilian Economics Meeting] 188, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].

    More about this item

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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