snqProfitImposeConvexity {micEcon} | R Documentation |
Imposing Convexity on a Symmetric Normalized Quadratic (SNQ) Profit function.
snqProfitImposeConvexity( estResult, rankReduction = 0, start = 10, ... )
estResult |
object returned by snqProfitEst . |
rankReduction |
an integer specifying the reduction of the rank of the β matrix. |
start |
starting values of the triangular Cholesky matrix. |
... |
arguments passed to optim |
The procedure proposed by Koebel, Falk and Laisney (2000, 2003) is applied to impose convexity in prices on an estimated symmetric normalized quadratic (SNQ) profit function.
a list of class snqProfitImposeConvexity
containing following objects:
mindist |
object returned by \optim . |
coef |
a list containing the vectors/matrix of the estimated
coefficients: * alpha = α_i. * beta = β_{ij}. * delta = delta_{ij} (only if quasi-fix inputs are present). * gamma = gamma_{ij} (only if quasi-fix inputs are present). * allCoef = vector of all coefficients. |
ela |
matrix with the price elasticities at mean prices and mean quantities. |
hessian |
hessian matrix of the profit function with respect to prices evaluated at mean prices. |
convexity |
logical. Convexity of the profit function. |
r2 |
R^2-values of all netput equations. |
weights |
the weights of prices used for normalization. |
normPrice |
vector used for normalization of prices. |
estData |
data frame used for estimation (contains the (scaled) netput prices, (scaled) netput quantities, (not scaled) fix inputs and the price index used for normalization. |
fitted |
data frame that contains the fitted netput quantities and the fitted profit. |
residuals |
data frame that contains the residuals of the netput quantities. |
form |
the functional form (see snqProfitEst ). |
pMeans |
means of the (scaled) netput prices. |
qMeans |
means of the (scaled) netput quantities. |
fMeans |
means of the (quasi-)fix input quantities. |
Arne Henningsen ahenningsen@agric-econ.uni-kiel.de
Koebel, B., M. Falk and F. Laisney (2000), Imposing and Testing Curvature Conditions on a Box-Cox Cost Function. Discussion Paper No. 00-70, ZEW, Mannheim, ftp://ftp.zew.de/pub/zew-docs/dp/dp0070.pdf.
Koebel, B., M. Falk and F. Laisney (2003), Imposing and Testing Curvature Conditions on a Box-Cox Cost Function. Journal of Business and Economic Statistics, 21, p. 319-335.
data( germanFarms ) germanFarms$qOutput <- germanFarms$vOutput / germanFarms$pOutput germanFarms$qVarInput <- -germanFarms$vVarInput / germanFarms$pVarInput germanFarms$qLabor <- -germanFarms$qLabor germanFarms$time <- c( 0:19 ) pNames <- c( "pOutput", "pVarInput", "pLabor" ) qNames <- c( "qOutput", "qVarInput", "qLabor" ) fNames <- c( "land", "time" ) estResult <- snqProfitEst( pNames, qNames, fNames, data = germanFarms ) estResult # Note: it is NOT convex in netput prices estResultConvex <- snqProfitImposeConvexity( estResult ) estResultConvex # now it is convex