Elluminate11-03-11

Elluminate11-03-11 - AEB 6184 Mitscherlich-Baule Production...

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Unformatted text preview: AEB 6184 Mitscherlich-Baule Production Function and McFadden Cost Function Elluminate - 13 Mitscherlich-Baule Production Function Starting with the simulated cost surface for production I generated 200 minimum cost solutions using numerical optimization for a vector of randomly drawn prices. I also added a correlated error term. ( 29 ( 29 ( 29 ( 29 ( 29 ( 29 ( 29 0.392 0.535 0.496 3 1 2 0.295 0.923 0.305 0.892 0.374 1.737 1 2 3 , , 100 1 1 1 x x x f x x x e e e- +- +- + =--- Normalized Quadratic Cost Function Following our discussion from the class, I estimated the normalized quadratic cost function ( 29 [ ] 1 1 3 3 11 12 1 2 1 2 3 3 12 22 2 2 3 3 3 1 2 1 2 1 11 3 3 2 , 1 2 w w w w c w y w w w w w w w w w w w y y y w w = + + + + + Normalized Quadratic Results...
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Elluminate11-03-11 - AEB 6184 Mitscherlich-Baule Production...

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