IDEAS home Printed from https://ideas.repec.org/a/taf/jeduce/v44y2013i3p249-267.html
   My bibliography  Save this article

Cost Minimization and Elasticity Estimation: A Two-Input, Two-Time Period Analysis

Author

Listed:
  • Stephen D. Casler

Abstract

Given data on input price changes and the resulting changes in optimal input use, a means of estimating numerical elasticity values for the two-input, two-time period case is presented in this article. The estimation procedure stems directly from the model of cost minimization subject to producing a given level of output. By showing the direct link from the world of theory to that of measurement, the author provides an interesting framework to illustrate the cost-minimization model's implications beyond the study of first- and second-order conditions. In developing estimation equations, opportunities arise for presenting and reviewing key economic concepts and mathematical techniques. The connection of the theoretical model with a numerical application helps students better appreciate the relevance of theory in finding quantitative answers to economic problems.

Suggested Citation

  • Stephen D. Casler, 2013. "Cost Minimization and Elasticity Estimation: A Two-Input, Two-Time Period Analysis," The Journal of Economic Education, Taylor & Francis Journals, vol. 44(3), pages 249-267, September.
    • Handle: RePEc:taf:jeduce:v:44:y:2013:i:3:p:249-267
    DOI: 10.1080/00220485.2013.795459
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00220485.2013.795459
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00220485.2013.795459?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mingan Zhu & Bihang Fan, 2021. "Exploring the Relationship between Rising Temperatures and the Number of Climate-Related Natural Disasters in China," IJERPH, MDPI, vol. 18(2), pages 1-11, January.
    2. Stephen D. Casler, 2015. "Why Growth Rates? Which Growth Rate? Specification and Measurement Issues in Estimating Elasticity Values," The American Economist, Sage Publications, vol. 60(2), pages 142-161, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jeduce:v:44:y:2013:i:3:p:249-267. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/VECE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.