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On the Econometric Analysis of Production When There Are No Output Data

Author

Listed:
  • Mellander, Erik

    (Research Institute of Industrial Economics (IFN))

  • Ysander, Bengt-Christer

    (University of Uppsala)

Abstract

A general method is described which allows a production activity to be analyzed by means of input data only. According to duality theory, the input cost shares can be completely specified without any information about output if the technology is homothetic. It is demonstrated that these cost shares can yield information about elasticities of substitution and factor demand and on productivity development. Moreover, the system of share equations can be generalized to allow for technical and allocative inefficiency and the effects of these inefficiencies on total costs and input demands can be estimated.

Suggested Citation

  • Mellander, Erik & Ysander, Bengt-Christer, 1989. "On the Econometric Analysis of Production When There Are No Output Data," Working Paper Series 241, Research Institute of Industrial Economics.
  • Handle: RePEc:hhs:iuiwop:0241
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    More about this item

    Keywords

    Production measures; elasticity of substitution; inefficiency; estimation method;

    JEL classification:

    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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