IDEAS home Printed from https://ideas.repec.org/a/tpr/restat/v72y1990i4p649-56.html
   My bibliography  Save this article

A Nonhomothetic Generalized Leontief Cost Function Based on Pooled Data

Author

Listed:
  • Nakamura, Shinichiro

Abstract

Factor demand studies of Komiya, Ozaki, Lau and Tamura based upon detailed cross-section data on individual production units have found that the nonhomothetic factor limitational ( NHT-FL) demand system, a nonhomothetic version of the Leontief fixed coefficient model, well explains the data. These results, however, have mostly been ignored in the current literature on flexible functional forms, and in fact none of the well-known nonhomothetic flexible cost function forms includes the NHT-FL model. I introduce a new nonhomothetic form of the Generalized Leontief (GL) cost function, which includes the NHT-FL model as a special case. Empirical application to a pooled data set of the Japanese iron & steel industry indicates that his form is superior to the translog, Diewert-Wales GL, and Berndt-Khaled GL forms. Copyright 1990 by MIT Press.

Suggested Citation

  • Nakamura, Shinichiro, 1990. "A Nonhomothetic Generalized Leontief Cost Function Based on Pooled Data," The Review of Economics and Statistics, MIT Press, vol. 72(4), pages 649-656, November.
  • Handle: RePEc:tpr:restat:v:72:y:1990:i:4:p:649-56
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0034-6535%28199011%2972%3A4%3C649%3AANGLCF%3E2.0.CO%3B2-0&origin=repec
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    ---><---

    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. Margarita Genius & Spiro Stefanou & Vangelis Tzouvelekas, 2009. "Productivity Growth and Efficiency under Leontief Technology: An Application to US Steam-Electric Power Generation Utilities," Working Papers 0913, University of Crete, Department of Economics.
    2. Genius, Margarita & Stefanou, Spiro E. & Tzouvelekas, Vangelis, 2012. "Measuring productivity growth under factor non-substitution: An application to US steam-electric power generation utilities," European Journal of Operational Research, Elsevier, vol. 220(3), pages 844-852.
    3. Emre Berk & Onurcan Ayas & M. Ali Ülkü, 2023. "Optimizing Process-Improvement Efforts for Supply Chain Operations under Disruptions: New Structural Results," Sustainability, MDPI, vol. 15(17), pages 1-23, August.
    4. Patrik Söderholm, 2000. "Environmental Regulations and Interfuel Substitution in the Power Sector: A Generalized Leontief Model," Energy & Environment, , vol. 11(1), pages 1-23, January.
    5. Guohua Feng & Jiti Gao & Xiaohui Zhang, 2018. "Estimation of technical change and price elasticities: a categorical time–varying coefficient approach," Journal of Productivity Analysis, Springer, vol. 50(3), pages 117-138, December.
    6. Wilhelm Althammer & Erik Hille, 2016. "Measuring climate policy stringency: a shadow price approach," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 23(4), pages 607-639, August.
    7. Yano, Takashi, 2018. "A global multi-sectoral model in local currencies," IDE Discussion Papers 703, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    8. Kian, Ramez & Gürler, Ülkü & Berk, Emre, 2014. "The dynamic lot-sizing problem with convex economic production costs and setups," International Journal of Production Economics, Elsevier, vol. 155(C), pages 361-379.

    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:tpr:restat:v:72:y:1990:i:4:p:649-56. 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: Kelly McDougall (email available below). General contact details of provider: https://direct.mit.edu/journals .

    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.