Hi everyone: so i am trying to calculate the translong cost function in order to obtain marginal cost for a Lerner Index. However, I am struggling with the interpreting of the function itself into eviews. I have attached a word document of my translog function and all the variables.
Any help at all would be appreciated.
Estimating translog cost function
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Estimating translog cost function
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- my dissertation.docx
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Re: Estimating translog cost function
ln(total_bank_cost)=c+c(2)*(total_earnings_assets)*ln(total_earnings_assets)+c(3)*.5*(total_earnings_assets)*ln(total_earnings_assets)^2+c(4)*wd_price_of_deposits_*ln(wd_price_of_deposits_)+c(5)*wk_price_of_physical_cap)*ln(wk_price_of_physical_cap)+c(6)*wl_price_of_labour_*ln(wl_price_of_labour_)+ln(total_earnings_assets)*ln(wd_price_of_deposits_)+ln(total_earnings_assets)*ln(wl_price_of_labour_)+ln(total_earnings_assets)*ln(wk_price_of_physical_cap)+ln(wd_price_of_deposits_)*ln(wk_price_of_physical_cap)+ln(wd_price_of_deposits_)*ln(wl_price_of_labour_)+ln(wk_price_of_physical_cap)*ln(wd_price_of_deposits_)+ln(wk_price_of_physical_cap)*ln(wl_price_of_labour_)+ln(wl_price_of_labour_)*ln(wd_price_of_deposits_)+ln(wl_price_of_labour_)*ln(wk_price_of_physical_cap)+ln(wl_price_of_labour_)^2+ln(wd_price_of_deposits_)^2+ln(wk_price_of_physical_cap)^2
would this be correct?
would this be correct?
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- Fe ddaethom, fe welon, fe amcangyfrifon
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Re: Estimating translog cost function
I am using same as stevenessex to estimating translog cost function and i tried to run this equation
log(total_cost)=c(1)+c(2)*(q)*log(q)+c(3)*0.5 (q)*log(q)^2+c(4)*w1_deposit_*log(w1_deposit_)+c(5)*w3_fixed_capital_)*log(w3_fixed_capital_)+c(6)*w2_labor_*log(w2_labor_)+log(q)*log(w1_deposit_)+log(q)*log(w2_labor_)+log(q)*log(w3_fixed_capital_)+log(w1_deposit_)*log(w3_fixed_capital_)+log(w1_deposit_)*log(w2_labor_)+log(w3_fixed_capital_)*log(w1_deposit_)+log(w3_fixed_capital_)*log(w2_labor_)+log(w2_labor_)*log(w1_deposit_)+log(w2_labor_)*log(w3_fixed_capital_)+log(w2_labor_)^2+log(w1_deposit_)^2+log(w3_fixed_capital_)^2
and it gave me "syntax error" and how can i calculate for each bank and each year?
log(total_cost)=c(1)+c(2)*(q)*log(q)+c(3)*0.5 (q)*log(q)^2+c(4)*w1_deposit_*log(w1_deposit_)+c(5)*w3_fixed_capital_)*log(w3_fixed_capital_)+c(6)*w2_labor_*log(w2_labor_)+log(q)*log(w1_deposit_)+log(q)*log(w2_labor_)+log(q)*log(w3_fixed_capital_)+log(w1_deposit_)*log(w3_fixed_capital_)+log(w1_deposit_)*log(w2_labor_)+log(w3_fixed_capital_)*log(w1_deposit_)+log(w3_fixed_capital_)*log(w2_labor_)+log(w2_labor_)*log(w1_deposit_)+log(w2_labor_)*log(w3_fixed_capital_)+log(w2_labor_)^2+log(w1_deposit_)^2+log(w3_fixed_capital_)^2
and it gave me "syntax error" and how can i calculate for each bank and each year?
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- Fe ddaethom, fe welon, fe amcangyfrifon
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Re: Estimating translog cost function
Go through and make sure you're not missing any * or + signs.
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Re: Estimating translog cost function
After estimating the translog function, How i should proceed to calculate the marginal cost for translog cost function for estimating lerner index for banking competition?
I am estimating same translog cost function as suggested by stevenessex as follows:
log(total_cost)=c(1)+c(2)*(q)*log(q)+c(3)*0.5(q)*log(q)^2+c(4)*w1_deposit_*log(w1_deposit_)+c(5)*w3_fixed_capital_)*log(w3_fixed_capital_)+c(6)*w2_labor_*log(w2_labor_)+log(q)*log(w1_deposit_)+log(q)*log(w2_labor_)+log(q)*log(w3_fixed_capital_)+log(w1_deposit_)*log(w3_fixed_capital_)+log(w1_deposit_)*log(w2_labor_)+log(w3_fixed_capital_)*log(w1_deposit_)+log(w3_fixed_capital_)*log(w2_labor_)+log(w2_labor_)*log(w1_deposit_)+log(w2_labor_)*log(w3_fixed_capital_)+log(w2_labor_)^2+log(w1_deposit_)^2+log(w3_fixed_capital_)^2
I am estimating same translog cost function as suggested by stevenessex as follows:
log(total_cost)=c(1)+c(2)*(q)*log(q)+c(3)*0.5(q)*log(q)^2+c(4)*w1_deposit_*log(w1_deposit_)+c(5)*w3_fixed_capital_)*log(w3_fixed_capital_)+c(6)*w2_labor_*log(w2_labor_)+log(q)*log(w1_deposit_)+log(q)*log(w2_labor_)+log(q)*log(w3_fixed_capital_)+log(w1_deposit_)*log(w3_fixed_capital_)+log(w1_deposit_)*log(w2_labor_)+log(w3_fixed_capital_)*log(w1_deposit_)+log(w3_fixed_capital_)*log(w2_labor_)+log(w2_labor_)*log(w1_deposit_)+log(w2_labor_)*log(w3_fixed_capital_)+log(w2_labor_)^2+log(w1_deposit_)^2+log(w3_fixed_capital_)^2
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Re: Estimating translog cost function
How can I calculate the translog Pakistani Talk Shows cost function for cross section data
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