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Estimating translog cost function

Posted: Thu Jul 06, 2017 1:10 pm
by stevenessex
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.

Re: Estimating translog cost function

Posted: Thu Jul 06, 2017 2:36 pm
by stevenessex
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?

Re: Estimating translog cost function

Posted: Thu Jul 06, 2017 2:40 pm
by EViews Gareth
log not ln.

Re: Estimating translog cost function

Posted: Fri Sep 29, 2017 2:03 am
by Rakan90Aldomy
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?

Re: Estimating translog cost function

Posted: Fri Sep 29, 2017 8:22 am
by EViews Gareth
Go through and make sure you're not missing any * or + signs.

Re: Estimating translog cost function

Posted: Tue Oct 01, 2019 10:40 am
by amitshankar11
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

Re: Estimating translog cost function

Posted: Mon Oct 07, 2019 1:50 am
by WILFREDOOTTO
How can I calculate the translog Pakistani Talk Shows cost function for cross section data