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RE: st: translog cost function

From   "Gauri Khanna" <>
Subject   RE: st: translog cost function
Date   Fri, 19 May 2006 10:42:37 +0000


You might want to visit TIm Coelli's website to get some tips although he uses his own program rather than Stata. Stata can estimate both production and cost functions - look up frontier (or xtfrontier for panel data) in the STATA reference manual.

Further, look at work done by Sunil Kumbhakar as well.

Stata can only estimate for three types of error distribution-half normal, truncated normal and exponential so I don't know what you are planning to use.

Don't have the reference of Atkinson so can't see the equations per se, but I would be most happy to have it as I too am toying with the idea of a cost function !!

BTW what are you migrating from ?


(Ms) Gauri

From: "Giovanni Vecchi" <>
To: <>
Subject: st: translog cost function
Date: Fri, 19 May 2006 10:34:13 +0200

I'm posting this on behalf of a colleague who's having problems to get the
message through.

Dear Stata users,

I am trying to estimate a translog cost function with shadow prices using
the approach of Atkinson and Halvorsen (1984). “Parametric efficiency tests,
economies of scale and input demand in US electric power generation”.
International Economic Review, 25(3). My focus is on equations (10) to (13).
I have a panel dataset (annual data, 20 firms, 13 years).

I am new to Stata (actually I'm still considering migrating to Stata) and
would appreciate any comments/references you may have to get me started.


Alberto Iozzi

Prof. Alberto Iozzi
Università di Roma ‘Tor Vergata’
Facoltà di Economia
Via Columbia 2
00133 Roma

Ph: +39 06 72595923 (voice)
+39 06 2040219 (fax)



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