tailieunhanh - Handbook of Econometrics Vols1-5 _ Chapter 31

Chapter 31 ECONOMETRIC METHODS PRODUCER BEHAVIOR FOR MODELING The purpose of this chapter is to provide an exposition of econometric methods for modeling producer behavior. The objective of econometric modeling is to determine the nature of substitution among inputs, the character of differences in technology | Chapter 31 ECONOMETRIC METHODS FOR MODELING PRODUCER BEHAVIOR DALE W. JORGENSON Harvard University Contents 1. Introduction 1842 . Production theory 1842 . Parametric form 1844 . Statistical method 1845 . Overview of the paper 1847 2. Price functions 1848 . Duality 1849 . Substitution and technical change 1851 . Parametrization 1855 . Integrability 1857 3. Statistical methods 1860 . Stochastic specification 1860 . Autocorrelation 1862 . Identification and estimation 1865 4. Applications of price functions 1871 . Substitution 1872 . Technical change 1876 . Two stage allocation 1882 5. Cost functions 1884 . Duality 1884 . Substitution and economies of scale 1886 . Parametrization and integrability 1889 . Stochastic specification 1891 6. Applications of cost functions 1893 . Economies of scale 1893 . Multiple outputs 1897 7. Conclusion 1900 . General equilibrium modeling 1900 . Panel data 1902 . Dynamic models of production 1904 References 1905 Handbook of Econometrics Volume HI Edited by Z. Griliches and M. D. Intriligator Elsevier Science Publishers BV 1986 1842 D. W. Jorgenson 1. Introduction The purpose of this chapter is to provide an exposition of econometric methods for modeling producer behavior. The objective of econometric modeling is to determine the nature of substitution among inputs the character of differences in technology and the role of economies of scale. The principal contribution of recent advances in methodology has been to exploit the potential of economic theory in achieving this objective. Important innovations in specifying econometric models have arisen from the dual formulation of the theory of production. The chief advantage of this formulation is in generating demands and supplies as explicit functions of relative prices. By using duality in production theory these functions can be specified without imposing arbitrary restrictions on patterns of production. The .