IMPOSING CURVATURE RESTRICTIONS ON A TRANSLOG COST FUNCTION USING A MARKOV CHAIN MONTE CARLO SIMULATION APPROACH

Using Kansas Farm data from 1973 to 1998, curvature restrictions are imposed on a translog cost function. Using uninformative priors with indicator functions representing distribution and inequality constraints, a Markov Chain Monte Carlo Simulation method is used to estimate parameters and check curvature at each point. Comparison is made to the Cholesky factorization method commonly used with the normalized quadratic functional form.


Issue Date:
2003
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/22038
Total Pages:
17
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2017-08-24

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