micEcon (version 0.6-18)

translogProdFuncMargCost: Marginal Costs of Translog Production Function

Description

Calculate the marginal costs of the output from a translog production function.

Usage

translogProdFuncMargCost( yName, xNames, wNames, data, coef,
   dataLogged = FALSE )

Value

A vector containing the marginal costs of producing the output.

Arguments

yName

a single character string containing the name of the output quantity.

xNames

a vector of strings containing the names of the input quantities.

wNames

a vector of strings containing the names of the input prices.

data

dataframe containing the data.

coef

vector containing all coefficients: if there are n inputs in xNames, the n+1 alpha coefficients must have names a_0, ..., a_n and the n*(n+1)/2 beta coefficients must have names b_1_1, ..., b_1_n, ..., b_n_n (only the elements of the upper right triangle of the beta matrix are directly obtained from coef; the elements of the lower left triangle are obtained by assuming symmetry of the beta matrix).

dataLogged

logical. Are the values in data already logged?

Author

Arne Henningsen and Geraldine Henningsen

See Also

translogEst, translogCalc, translogDeriv, translogEla and translogCostEst.

Examples

   data( germanFarms )
   # output quantity:
   germanFarms$qOutput <- germanFarms$vOutput / germanFarms$pOutput
   # quantity of variable inputs
   germanFarms$qVarInput <- germanFarms$vVarInput / germanFarms$pVarInput
   # a time trend to account for technical progress:
   germanFarms$time <- c(1:20)

   # generate (artificial) prices
   germanFarms$pLand <- 200 + 15 * germanFarms$time
   germanFarms$pTime <- 1

   # estimate a single-output translog production function
   estResult <- translogEst( "qOutput", c( "qLabor", "land", "qVarInput", "time" ),
      germanFarms )

   # compute the marginal costs of producing the output
   margCost <- translogProdFuncMargCost( yName = "qOutput",
      xNames = c( "qLabor", "land", "qVarInput", "time" ),
      wNames = c( "pLabor", "pLand", "pVarInput", "pTime" ),
      data = germanFarms, coef = coef( estResult ) )