You are not currently logged in.
Access JSTOR through your library or other institution:
If You Use a Screen ReaderThis content is available through Read Online (Free) program, which relies on page scans. Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Quadratic Spline Models for Producer's Supply and Demand Functions
W. E. Diewert and T. J. Wales
International Economic Review
Vol. 33, No. 3 (Aug., 1992), pp. 705-722
Published by: Wiley for the Economics Department of the University of Pennsylvania and Institute of Social and Economic Research, Osaka University
Stable URL: http://www.jstor.org/stable/2527134
Page Count: 18
You can always find the topics here!Topics: Economic models, Imports, Supply and demand, Supply, Statistical estimation, Economic modeling, Profitability theory, Price elasticity, Economic growth models, Financial investments
Were these topics helpful?See something inaccurate? Let us know!
Select the topics that are inaccurate.
Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Preview not available
In this paper we propose and estimate a system of producer output supply and input demand functions that generalizes the standard normalized quadratic form. The generalization adds either linear or quadratic splines in a time (or technical change) variable, yet retains the main attractive property of the normalized quadratic, which is that it can provide a local second order approximation while maintaining the correct curvature globally. However, the generalization has additional desirable approximation properties with respect to the splined variable, and thus permits a more flexible treatment of technical change than is provided by standard flexible functional forms.
International Economic Review © 1992 Economics Department of the University of Pennsylvania