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Original Articles

Applied production theory: explicit, flexible, and general functional forms

Pages 1483-1492 | Published online: 04 Oct 2010
 

Abstract

The problem of estimating elasticity values is considered using a general functional from for the growth rate of input demand. The general input growth equation holds for all functional forms, both flexible and inflexible; it is linear-in-parameters and easy to use in applied production studies. An empirical application compares the theoretical, computational, and predictive characteristics of the translog and general functional forms.

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