translogCostEst: Estimate a translog Cost Function
In micEcon: Microeconomic Analysis and Modelling

Description Usage Arguments Value Author(s) See Also Examples

Estimate a translog cost function.

NOTE: this function is still under development and incomplete!

1 2	translogCostEst( cName, yName, pNames, data, fNames = NULL, shifterNames = NULL, dataLogged = FALSE, homPrice = TRUE, ... )

`cName`	a string containing the name of the variable for total cost.
`yName`	a string containing the name of the variable for the total output quantity.
`pNames`	a vector of strings containing the names of the input prices.
`data`	data frame containing the data (possibly a panel data frame created with `pdata.frame`).
`fNames`	a vector of strings containing the names of fixed inputs.
`shifterNames`	a vector of strings containing the names of the independent variables that should be included as shifters only (not in quadratic or interaction terms).
`dataLogged`	logical. Are the values in `data` already logged?
`homPrice`	logical. Should homogeneity of degree one in prices be imposed?
`...`	further arguments are passed to `lm` or `plm`.

a list of class translogCostEst containing following objects:

`est`	the object returned by `lm` or `plm`.
`nExog`	length of argument `xNames`.
`nShifter`	length of argument `shifterNames`.
`residuals`	residuals.
`fitted`	fitted values.
`coef`	vector of all coefficients.
`coefCov`	covariance matrix of all coefficients.
`r2`	R^2 value.
`r2bar`	adjusted R^2 value.
`nObs`	number of observations.
`model.matrix`	the model matrix.
`call`	the matched call.
`cName`	argument `cName`.
`yName`	argument `yName`.
`pNames`	argument `pNames`.
`fNames`	argument `fNames`.
`shifterNames`	argument `shifterNames`.
`dataLogged`	argument `dataLogged`.
`homPrice`	argument `homPrice`.

Arne Henningsen

translogEst and quadFuncEst.

   data( germanFarms )
   # output quantity:
   germanFarms$qOutput <- germanFarms$vOutput / germanFarms$pOutput
   # value of labor input
   germanFarms$vLabor <- germanFarms$pLabor + germanFarms$qLabor
   # total variable cost
   germanFarms$cost <- germanFarms$vLabor + germanFarms$vVarInput
   # a time trend to account for technical progress:
   germanFarms$time <- c(1:20)

   # estimate a translog cost function
   estResult <- translogCostEst( cName = "cost", yName = "qOutput", 
      pNames = c( "pLabor", "pVarInput" ), fNames = "land",
      shifterNames = "time", data = germanFarms, homPrice = FALSE )

   summary( estResult$est )

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Call:
lm(formula = as.formula(estFormula), data = estData)

Residuals:
         1          2          3          4          5          6          7 
 8.172e-05 -1.898e-04  1.156e-04  1.224e-03 -4.156e-03 -2.069e-04  1.469e-02 
         8          9         10         11         12         13         14 
-1.601e-02 -1.140e-02  1.410e-02  4.908e-03 -1.810e-03  4.508e-03 -3.066e-03 
        15         16         17         18         19         20 
 5.102e-03 -1.785e-03 -4.612e-03 -7.185e-04 -1.010e-02  9.319e-03 

Coefficients:
             Estimate Std. Error t value Pr(>|t|)  
(Intercept) -92.68362   43.17022  -2.147   0.0983 .
a_1          13.59420   20.69646   0.657   0.5472  
a_2          10.77233    7.75692   1.389   0.2372  
a_3           7.21359   31.43773   0.229   0.8298  
a_4         -10.98180   32.74041  -0.335   0.7542  
b_1_1         7.37033   12.72307   0.579   0.5935  
b_1_2        -8.74566    5.28805  -1.654   0.1735  
b_1_3         4.54529   10.26951   0.443   0.6809  
b_1_4        -0.22417   18.35168  -0.012   0.9908  
b_2_2        -0.04734    1.38291  -0.034   0.9743  
b_2_3         1.02611    4.12176   0.249   0.8157  
b_2_4        14.39926    8.99344   1.601   0.1846  
b_3_3         0.58337    6.61108   0.088   0.9339  
b_3_4       -15.73352   17.11595  -0.919   0.4100  
b_4_4       -16.94460   31.97920  -0.530   0.6243  
d_1          -0.08959    0.08187  -1.094   0.3353  
---
Signif. codes:  0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1

Residual standard error: 0.01671 on 4 degrees of freedom
Multiple R-squared:  0.9984,	Adjusted R-squared:  0.9926 
F-statistic: 170.9 on 15 and 4 DF,  p-value: 7.682e-05