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Chapter 31
ECONOMETRIC METHODS FOR MODELING
PRODUCER BEHAVIOR
DALE W. JORGENSON
Harvard University
Contents
1. Introduction 1842
1.1. Production theory 1842
1.2. Parametric form 1844
1.3. Statistical method 1845
1.4. Overview of the paper 1847
2. Price functions 1848
2.1, Duality 1849
2.2. Substitution and technical change 1851
2.3. Parametrization 1855
2.4. Integrability 1857
3. Statistical methods 1860
3.1. Stochastic specification 1860
3.2. Autocorrelation 1862
3.3. Identification and estimation 1865
4. Applications of price functions 1871
4.1. Substitution 1872
4.2. Technical change 1876
4.3. Two stage allocation 1882
5. Cost functions 1884
5.1. Duality 1884
5.2. Substitution and economies of scale 1886
5.3. Parametrization and integrability 1889
5.4, Stochastic specification 1891
6. Applications of cost functions 1893
6.1. Economies of scale 1893
6.2. Multiple outputs 1897
7. Conclusion 1900
7.1. General equilibrium modeling 1900
7.2. Panel data 1902
7.3. Dynamic models of production 1904
References 1905
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