Challenges in forecasting fleet development and deployment are in part due to fuel price uncertainty. To address this issue, a recent study developed an aircraft-specific Leontief technology operating cost model (LM) to compare aircraft costs under fuel price uncertainty. This model considers individual aircraft types to be Leontief technologies, such that the key drivers of cost must be used i...

Cost function and factor demand estimation and measurement are among the most useful tools in economic analysis. This paper defines cost function flexibility in a new way that extends results and concepts from consumer demand theory to models of joint production. This applies to production models where input demand equations can be represented in terms of input prices, quasi-fixed inputs, and c...

abstractgiven the importance of the notion of efficiency in the country's economic growth, measuring the efficiency and the technology gap for various industries in order to achieve the best possible resource assignment, following the declared policy goals, is of particular importance for those countries, such as iran, which are now at the early stages of the industrialization process. hen...

Context and aim: The Danish hospital sector is facing a significant rebuilding programme, driven by a political desire to concentrate activity in fewer and larger hospitals. Our aim is to analyse whether the current configuration of Danish hospitals is subject to scale economies that may justify such plans and to estimate an optimal hospital size. Methods: We estimate cost functions using panel...

This paper examines the cost structure particularly cost elasticities, returns to scale, marginal cost of production, technological progress, demand for factor of production, and factor substitution in publicly owned State Transport Undertakings (STUs) in India. To examine these issues, a translog cost function is estimated jointly with factor share equations subject to required coefficient res...

Several common flexible functional forms are evaluated for Texas agricultural production utilizing three procedures. Nested hypothesis tests indicate that the normalized quadratic is the marginally-preferred functional form followed by the generalized Leontief. Predictive accuracy results are ambiguous between the generalized Leontief and the normalized quadratic. Statistical performance favors...

Two econometric issues arise in the estimation of complete systems of producer or consumer demands when many non-negativity constraints are binding for a large share of observations, as frequently occurs with micro-level data. The rst is computational. The econometric model is essentially an endogenous switching regimes model which requires the evaluation of multivariate probability integrals. ...