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

Back