The shadow cost model can be estimated by adopting two different normalizations of the input price distortions. However, the normalization suggested by Balk [Econ. Lett. 55 (1997) 45] produces estimates not invariant to the choice of the shadow input price chosen as numeraire in order to obtain linear homogeneity of the cost function.
The effect of the normalisation of the shadow price vector on the cost function estimation / Maietta, ORNELLA WANDA. - In: ECONOMICS LETTERS. - ISSN 0165-1765. - STAMPA. - 77:(2002), pp. 381-385. [10.1016/S0165-1765(02)00152-0]
The effect of the normalisation of the shadow price vector on the cost function estimation
MAIETTA, ORNELLA WANDA
2002
Abstract
The shadow cost model can be estimated by adopting two different normalizations of the input price distortions. However, the normalization suggested by Balk [Econ. Lett. 55 (1997) 45] produces estimates not invariant to the choice of the shadow input price chosen as numeraire in order to obtain linear homogeneity of the cost function.File in questo prodotto:
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