On the interpretation of coefficients in multiplicative-logarithmic functions: a reconsideration

Abstract

This paper shows that previous arguments about the problems in interpreting the coefficients in multiplicative-logarithmic functions, derived from an arbitrary rebasing of the series, are incorrect. In the specific case of the translog production function, the tests for the CES, Cobb-Douglas and constant returns to scale restrictions are shown to be invariant to any rescaling.