snqProfitEla | R Documentation |
Calculates the Price Elasticities of a Symmetric Normalized Quadratic (SNQ) profit function.
snqProfitEla( beta, prices, quant, weights, scalingFactors = rep( 1, length( weights ) ), coefVcov = NULL, df = NULL )
beta |
matrix of estimated β coefficients. |
prices |
vector of netput prices at which the elasticities should be calculated. |
quant |
vector of netput quantities at which the elasticities should be calculated. |
weights |
vector of weights of prices used for normalization. |
scalingFactors |
factors to scale prices (and quantities). |
coefVcov |
variance covariance matrix of the coefficients (optional). |
df |
degrees of freedom to calculate P-values of the elasticities (optional). |
a list of class snqProfitEla
containing following elements:
ela |
matrix of the price elasticities. |
vcov |
variance covariance matrix of the price elasticities. |
stEr |
standard errors of the price elasticities. |
tval |
t-values of the price elasticities. |
pval |
P-values of the price elasticities. |
A price elasticity is defined as
E_{ij} = \frac{ \displaystyle \frac{ \partial q_i }{ q_i } } { \displaystyle \frac{ \partial p_j }{ p_j } } = \frac{ \partial q_i }{ \partial p_j } \cdot \frac{ p_j }{ q_i }
Thus, e.g. E_{ij}=0.5 means that if the price of netput j (p_j) increases by 1%, the quantity of netput i (q_i) will increase by 0.5%.
Arne Henningsen
snqProfitEst
.
# just a stupid simple example snqProfitEla( matrix(101:109,3,3), c(1,1,1), c(1,-1,-1), c(0.4,0.3,0.3) ) # now with real data if( requireNamespace( 'micEcon', quietly = TRUE ) ) { data( germanFarms, package = "micEcon" ) germanFarms$qOutput <- germanFarms$vOutput / germanFarms$pOutput germanFarms$qVarInput <- -germanFarms$vVarInput / germanFarms$pVarInput germanFarms$qLabor <- -germanFarms$qLabor germanFarms$time <- c( 0:19 ) priceNames <- c( "pOutput", "pVarInput", "pLabor" ) quantNames <- c( "qOutput", "qVarInput", "qLabor" ) estResult <- snqProfitEst( priceNames, quantNames, c("land","time"), data=germanFarms ) estResult$ela # price elasticities at mean prices and mean quantities # price elasticities at the last observation (1994/95) snqProfitEla( estResult$coef$beta, estResult$data[ 20, priceNames ], estResult$data[ 20, quantNames ], estResult$weights, estResult$scalingFactors ) }
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