Description Usage Arguments Details Author(s) See Also Examples

View source: R/snqProfitWeights.R

Returns a vector of weights to normalize prices on a Symmetric Normalized Quadratic (SNQ) Profit function.

1 | ```
snqProfitWeights( priceNames, quantNames, data, method = "DW92", base = 1 )
``` |

`priceNames` |
a vector of strings containing the names of netput prices. |

`quantNames` |
a vector of strings containing the names of netput quantities. |

`data` |
a data frame containing the data. |

`method` |
the method to determine the weights (see details). |

`base` |
the base period(s) for scaling prices (see details). |

If argument `method`

is 'DW92' the method of Diewert and
Wales (1992) is applied. They predetermine the weights by

* θ_{i} = \frac{
\displaystyle ≤ft | \overline{x}_{i} \right| p_{i}^{0} }{
\displaystyle ∑_{i=1}^{n} ≤ft| \overline{x}_{i} \right| p_{i}^{0}}*

Defining the scaled netput quantities as
*\widetilde{x}_{i}^{t} = x_{i}^{t}\cdot p_{i}^{0}*
we get following formula:

* θ_{i} = \frac{
\displaystyle ≤ft| \overline{ \widetilde{ x } }_{i} \right|}{
\displaystyle ∑_{i=1}^{n} ≤ft| \overline{ \widetilde{ x } }_{i} \right|}*

The prices are scaled that they are unity in the base period or - if there
is more than one base period - that the
means of the prices over the base periods are unity.
The argument `base`

can be either

(a) a single number: the row number of the base prices,

(b) a vector indicating several observations: The means of these
observations are used as base prices,

(c) a logical vector with the same length as the `data`

: The
means of the observations indicated as 'TRUE' are used as base prices, or
(d) `NULL`

: prices are not scaled.

Arne Henningsen

1 2 3 4 5 6 7 | ```
data( germanFarms, package = "micEcon" )
germanFarms$qOutput <- germanFarms$vOutput / germanFarms$pOutput
germanFarms$qVarInput <- -germanFarms$vVarInput / germanFarms$pVarInput
germanFarms$qLabor <- -germanFarms$qLabor
priceNames <- c( "pOutput", "pVarInput", "pLabor" )
quantNames <- c( "qOutput", "qVarInput", "qLabor" )
snqProfitWeights( priceNames, quantNames, germanFarms )
``` |

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