Author : Ernst R. Berndt
Release : 1971
Genre : Production fuctions (Economic theory)
Kind : eBook
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Book Synopsis The Translog Production Function and Factor Substitution in U.S. Manufacturing, 1929-1968 by : Ernst R. Berndt

Download or read book The Translog Production Function and Factor Substitution in U.S. Manufacturing, 1929-1968 written by Ernst R. Berndt. This book was released on 1971. Available in PDF, EPUB and Kindle. Book excerpt: The paper contains an empirical application of the translog production function proposed by Christensen, Jorgenson, and Lau. The application is a study of substitution possibilities among equipment, structures, and labor in U.S. manufacturing 1929-1968. Since there have been few studies of substitution possibilities with more than two factor inputs, considerable attention is given to estimating several related elasticity of substitution concepts. Some new theorems relating separable production specifications to restrictions on the Allen partial elasticities of substitution are presented. The functional form proposed by K. Sato is shown to be less general than the translog function, but it is found to adequately represent substitution possibilities for U.S. manufacturing. The CES, Uzawa, and Cobb-Douglas forms are more restrictive than the Sato form. They are found not to be sufficiently flexible to be useful for this application. (Author).