We compare and contrast two popular dynamic flexible functional forms for cost functions, the translog and the logit (Considine, 1990), using data on US industrial energy demand from 1960 to 1992 which has been analyzed by previous studies (Considine (1989) and Jones (1995)). We show the crucial role played by different dynamic formulations of the translog in this analysis of factor demands wit...

A three-staged least squares translog cost function is estimated for 13 heavy-rail and nine light-rail United States urban mass transit systems for the period 1985-1991. Firm output is taken to be endogenous. Large economies of density are found in operating costs. These economies become even more substantial when the cost of way and structure maintenance and capital costs are incorporated. How...

This paper explores the role of unobserved managerial ability in production and its relationship with technical efficiency. Previous analyses of managerial ability have been based on strong assumptions about its role in production or on the use of proxies. We avoid these limitations by introducing managerial ability as an unobserved random variable in a translog production function. The resulti...

This paper develops a separable functional form in which all the relevant aggregator functions are modeled to the desired degree of approximation. This leads to separable structures that are more flexible than those implied by parametric restrictions of flexible functional forms. Tests of separability can then be accomplished in a non-nested framework. This approach is illustrated with an appli...

A consistent finding in the development literature is that average non-farm labor productivity higher than farm productivity. These differences are sometimes used to promote policies which advance sector. In this article, we analyze importance of two specification choices when comparing gaps, using detailed household panel data from Malawi. Importantly, able calculate both revenue products (ARP...

The airline industry has undergone significant changes following deregulation more than a decade ago. A prominent development in recent years has been the proliferation of airline alliances. An important question arises: are alliances cost savings or competition reducing? This paper addresses the first part of the question. However, the answer has bearing on the second part as well, since resul...

sensitivity analysis with respect to the functional forms provides estimates of the uncertainties involved in choosing a specific functional structure. this is vital in cge modeling where it is conventional to take elasticities from other studies. in the present study, the robustness of model results with respect to the functional form is checked. in one scenario, the production function is rep...

this paper is concerned with the estimation of frontier production function to measure the technical efficiency for iranian textile companies during 1995. the objective of this estimation is to investigate if there are any differences in the technical efficiency between the private and public firms as well as the relationship between technical efficiency and size of textile companies in iran. a...

This work makes contributions regarding the knowledge of productive structure collective transport service in Mendoza Metropolitan Area (Argentina) during stage prior to a structural change its mobility system. The existence economies scale is studied through estimation translog cost function, using panel data for bus operating companies period 2005-2012. results this research show market that ...