The approximation capabilities of the minflex-Laurents, translog, and generalized Leontief forms

Gary D. Thompson, Mark Langworthy, David Blough

Research output: Contribution to journalArticle

1 Scopus citations

Abstract

This paper compares the approximation capabilities of the minflex-Laurents translog and minflex generalized Leontief cost functions with their translog and generalized Leontief counterparts in Monte Carlo experiments. The minflex Laurent specifications generally provided closer approximations to underlying technical and economic parameters. Imposition of nonlinear restrictions on some of the parameters of the minflex Laurent models yielded measurable improvement in estimated elasticities of substitutions, returns to scale, and rates of technical change.

Original languageEnglish (US)
Pages (from-to)299-322
Number of pages24
JournalJournal of Productivity Analysis
Volume2
Issue number4
DOIs
StatePublished - Feb 1 1992

Keywords

  • Laurent functional forms
  • Monte Carlo
  • rates of technical change

ASJC Scopus subject areas

  • Business and International Management
  • Social Sciences (miscellaneous)
  • Economics and Econometrics

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