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| Schumacher, Sara K.; Marsh, Thomas L.. |
| This study investigated the cost structure of the floriculture industry in the United States. Economies of scale and input elasticities were estimated with a normalized quadratic cost function. Results suggest that economies of scale exist in the floriculture industry. As producers become large and more automated, they have a cost advantage relative to smaller producers who are producing the same output product mix. The existence of economies of scale suggests that average grower size can increase in the future as growers increase in size to take advantage of cost efficiencies. |
| Tipo: Journal Article |
Palavras-chave: Duality; Economies of scale; Floriculture; Nonprice variables; Q12; C31; D20. |
| Ano: 2003 |
URL: http://purl.umn.edu/43145 |
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| Hilmer, Christiana E.; Holt, Matthew T.. |
| Whereas consumer theory employs several different empirical specifications for estimating indirect utility functions, producer theory has relied on the Translog specification to estimate the indirect production function. In this paper, we apply Lewbel’s more general functional specification and investigate its implications for the estimation of indirect production functions in productivity analysis. An attractive feature of the Lewbel model is that it nests both the Translog and the almost ideal supply system, offering a method to assess the empirical validity of all three specifications. Aggregate U.S. production data are used to examine the performance of the three models in an empirical application. |
| Tipo: Journal Article |
Palavras-chave: Duality; Indirect production function; Nested test; C32; C52; Q12. |
| Ano: 2005 |
URL: http://purl.umn.edu/43484 |
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| Moschini, GianCarlo. |
| Cost function estimation under production uncertainty is problematic because the relevant cost is conditional on unobservable expected output. If input demand functions are also stochastic, then a nonlinear errors-in-variables model is obtained and standard estimation procedures typically fail to attain consistency. But by exploiting the full implications of the expected profit maximization hypothesis that gives rise to ex ante cost functions, it is shown that the errors-in-variables problem can be effectively removed, and consistent estimation of the parameters of interest can be achieved. A Monte Carlo experiment illustrates the advantages of the proposed procedure as well as the pitfalls of other existing estimators. |
| Tipo: Working or Discussion Paper |
Palavras-chave: Cost function; Duality; Expected profit maximization; Nonlinear errors-invariables; Stochastic production; Risk and Uncertainty. |
| Ano: 2001 |
URL: http://purl.umn.edu/18443 |
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