A Non-homothetic Globally Concave Flexible Cost Function and its Application to Panel Data

A globally concave, monotone and flexibl

A globally concave, monotone and flexible cost function: derivation and application

✍ Asher Tishler; Stan Lipovetsky 📂 Article 📅 2000 🏛 John Wiley and Sons 🌐 English ⚖ 166 KB

Empirical analysis of demand often requires that the functional form of the cost function be speci"ed in advance. The form of the function has to be both consistent with economic theory and su$ciently #exible to accommodate the data. Recent research has indicated that #exible forms do not always gen