English (United Kingdom)

https://curated-unify.zendy.io/wp-json/zendy-region/v1/featured_content/oa?rat=en

https://curated-unify.zendy.io/wp-json/zendy-region/v1/highlighted_journal/

Zendy Plus

Presents the access of premium content as premium feature

Premium Content

Presents the keyphrase highlighting as premium feature

Keyphrase Highlighting

Presents the summarisation as premium feature

Summarisation

Insights

Presents the pdf analysis as premium feature

PDF Analysis

Presents the zaia usage as premium feature

ZAIA

Zendy Tools

Zendy Open

.,We present a new,method,for imposing,and testing concavity of a cost function using asymptotic least squares, which can easily be imple- mented,even for cost functions which are nonlinear in parameters. We provide an illustration on the basis of a (generalized) Box-Cox cost function with six inputs: capital, labor disaggregated in three skill levels, energy, and intermedi- ate materials. A parametric,test of the concavity of the cost function in prices is presented, and price elasticities are compared when curvature conditions are imposed and when they are not. The results show that, although concavity is statistically rejected, the estimates are not very sensitive to its imposition. We find that substitution is stronger between,the different types of labor than between,any other pair of inputs. Keywords: input demands, concavity, inequality restrictions, Box-Cox. JEL-Classification: C33, E23, J21 ,J 31. We thank Herbert Buscher, Sandra Kneile and the participants in seminars in Magdeburg, Mannheim,

Imposing and Testing Curvature Conditions on a Box-Cox Cost Function