A generalization of the Symmetric Translog functional form

• 成果类型: Article
• 署名作者: Diewert, W. Erwin
• 署名单位: University of British Columbia
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2023.103821
• 发表日期: 2024
• 关键词: Translog functional form; Symmetric Translog functional form; Generalized Symmetric Translog functional; form; Consumer demand systems; Reservation prices; Elasticities of substitution

摘要

Feenstra and Weinstein introduced a special case of the translog cost function, the Symmetric Translog (ST) Cost Function, which replaced all of the second order parameters which are present in the Translog functional form by a single positive parameter. The ST functional form is useful in the context of estimating consumer preferences over related products and provides an alternative to the use of Constant Elasticity of Substitution (CES) preferences in this context. The ST functional form has a potential advantage over the CES functional form that it produces finite estimates for reservation prices for missing products whereas the CES reservation prices are always infinite. The present paper proposes a Generalized Symmetric Translog Cost Function which also generates finite reservation prices but is more flexible than the ST functional form.