snqProfitHessian {micEcon}R Documentation

SNQ Profit function: Hessian matrix

Description

Returns the Hessian (substitution) matrix of a Symmetric Normalized Quadratic (SNQ) Profit Function.

Usage

snqProfitHessian( beta, prices, weights,
   scalingFactors = rep( 1, length( weights ) ) )

Arguments

beta matrix of the beta coefficients.
prices vector of netput prices at which the Hessian should be calculated.
weights vector of weights of prices for normalization.
scalingFactors factors to scale prices (and quantities).

Author(s)

Arne Henningsen

See Also

snqProfitEst, snqProfitEla and snqProfitHessianDeriv.

Examples

   # just a stupid simple example
   snqProfitHessian( matrix(101:109,3,3), c(1,1,1), c(0.4,0.3,0.3) )

   # now with real data
   data( germanFarms )
   germanFarms$qOutput   <- germanFarms$vOutput   / germanFarms$pOutput
   germanFarms$qVarInput <- -germanFarms$vVarInput / germanFarms$pVarInput
   germanFarms$qLabor    <- -germanFarms$qLabor
   germanFarms$time <- c( 0:19 )
   priceNames <- c( "pOutput", "pVarInput", "pLabor" )
   quantNames <- c( "qOutput", "qVarInput", "qLabor" )

   estResult <- snqProfitEst( priceNames, quantNames, c("land","time"), data=germanFarms )

   estResult$hessian  # the Hessian at mean prices and mean quantities

   # Hessian at the last observation (1994/95)
   snqProfitHessian( estResult$coef$beta, estResult$data[ 20, priceNames ],
      estResult$weights, estResult$scalingFactors )

[Package micEcon version 0.5-14 Index]