HOW MISLEADING CAN ALLEN ELASTICITIES OF SUBSTITUTION BE?

The Allen elasticity of substitution has recently been shown to be an incorrect measure of substitutability when there are more than two inputs. This paper presents an empirical comparison of the Morishima and Allen elasticities based on a translog cost function estimated using data for aggregate southeastern U.S. Agriculture. The results indicate substantial differences. in the two measures.


Issue Date:
Aug 05 1990
Publication Type:
Conference Paper/ Presentation
Record Identifier:
http://ageconsearch.umn.edu/record/270855
Language:
English
Total Pages:
14




 Record created 2018-04-06, last modified 2018-04-06

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)