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The CES-Translag Production Function, Returns to Scale and AES

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  • Kymn, Kern O
  • Hisnanick, John J

Abstract

The translog functional form imposes no a priori restrictions on the substitution possibilities between the factor inputs, by relaxing the assumption of strong separability, and the CES-translog cost function specification allows for testing homothetic technology with Hicks-neutral technical change. In this paper an n-factor CES-translog production function is presented which develops the parameters to directly assess scale effects from those due to technology in the production structure. In addition, by applying Shephard's lemma it was possible to derive the input demand functions, as well as the partial elasticities of substitution and the cross-partial price elasticities of demand for a generalized CES-translog production structure. Copyright 2001 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research

Suggested Citation

  • Kymn, Kern O & Hisnanick, John J, 2001. "The CES-Translag Production Function, Returns to Scale and AES," Bulletin of Economic Research, Wiley Blackwell, vol. 53(3), pages 207-214, July.
    • Handle: RePEc:bla:buecrs:v:53:y:2001:i:3:p:207-14
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    Cited by:

    1. Nitin Gupta, 2012. "Impact of Elasticities of Substitution, Technical Change, and Labour Regulations on Labour Welfare in Indian Industries," ASARC Working Papers 2012-10, The Australian National University, Australia South Asia Research Centre.
    2. Eckey, Hans-Friedrich & Kosfeld, Reinhold & Türck, Matthias, 2004. "Regionale Produktionsfunktionen mit Spillover-Effekten für Deutschland," Volkswirtschaftliche Diskussionsbeiträge 64, University of Kassel, Faculty of Economics and Management.
    3. Stéphane Korsaga, 2018. "Land Tenure Security, Land-Related Investments and Agricultural Performance in Sub-Saharan Africa: Efficiency or Equity? A Microeconomic Analysis Applied to the Case of Burkina Faso," Working Papers halshs-01699118, HAL.

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