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On the interpretation of coefficients in multiplicative-logarithmic functions: a reconsideration

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  • Jesus Felipe

Abstract

This paper shows that previous arguments about the problems in interpreting the coefficients in multiplicative-logarithmic functions, derived from an arbitrary rebasing of the series, are incorrect. In the specific case of the translog production function, the tests for the CES, Cobb-Douglas and constant returns to scale restrictions are shown to be invariant to any rescaling.

Suggested Citation

  • Jesus Felipe, 1998. "On the interpretation of coefficients in multiplicative-logarithmic functions: a reconsideration," Applied Economics Letters, Taylor & Francis Journals, vol. 5(6), pages 397-400.
    • Handle: RePEc:taf:apeclt:v:5:y:1998:i:6:p:397-400
    DOI: 10.1080/135048598354799
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    Cited by:

    1. Laureti, Tiziana & Secondi, Luca & Biggeri, Luigi, 2014. "Measuring the efficiency of teaching activities in Italian universities: An information theoretic approach," Economics of Education Review, Elsevier, vol. 42(C), pages 147-164.
    2. Laureti, Tiziana & Benedetti, Ilaria & Branca, Giacomo, 2021. "Water use efficiency and public goods conservation: A spatial stochastic frontier model applied to irrigation in Southern Italy," Socio-Economic Planning Sciences, Elsevier, vol. 73(C).
    3. Christodoulou, Demetris & Lev, Baruch & Ma, Le, 2018. "The productivity of Chinese patents: The role of business area and ownership type," International Journal of Production Economics, Elsevier, vol. 199(C), pages 107-124.
    4. Baiocchi, Giovanni, 2012. "On dimensions of ecological economics," Ecological Economics, Elsevier, vol. 75(C), pages 1-9.

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