Econometrica: Mar 1970, Volume 38, Issue 2
Estimating Cost Function Parameters Without Using Cost Data: Illustrated Methodology
https://doi.org/0012-9682(197003)38:2<256:ECFPWU>2.0.CO;2-M
p.
256-275
James N. Rosse
A study of daily newspaper cost behavior is used to illustrate a method of estimating cost function parameters using cross-section output and price data only. The cost parameter estimates are obtained by simultaneously estimating demand functions and equations characterizing necessary conditions for profit maximization.Log In To View Full Content