Generalized Quadratic Revenue Functions

Citeable URL: https://ir.library.oregonstate.edu/concern/articles/6108vc085

Descriptions

Attribute Name	Values
Creator	Chambers, Robert Faere, Rolf Grosskopf, Shawna Vardanyan, Michael
Abstract	In this paper we focus on the specification of revenue functions in their dual price space. We consider two distance functions—the Shephard output distance function and the directional output distance function—and define both in price space. The former is multiplicative in nature and satisfies homogeneity, whereas the latter is additive and satisfies the translation property. Functional equation methods yield the translog specification in the case of the Shephard distance function and a quadratic specification in the case of the directional distance function. Monte Carlo evidence suggests that the quadratic specification outperforms the translog in large samples and in true models with plenty of curvature.
Resource Type	Article
DOI	https://doi.org/10.1016/j.jeconom.2012.09.005
Date Available	2013-04-05T19:15:38+00:00
Date Issued	2013-03
Citation	Chambers, R., Fare, R., Grosskopf, S., & Vardanyan, M. (2013). Generalized quadratic revenue functions. Journal of Econometrics, 173(1), 11-21. doi: 10.1016/j.jeconom.2012.09.005
Journal Title	Journal of Econometrics
Journal Volume	173
Journal Issue/Number	1
Academic Affiliation	College of Public Health and Human Sciences
权利声明	Copyright Not Evaluated
Publisher	Elsevier
Peer Reviewed	Yes
Language	English [eng]
Replaces	http://hdl.handle.net/1957/38019