Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/79332 
Year of Publication: 
2003
Series/Report no.: 
cemmap working paper No. CWP14/03
Publisher: 
Centre for Microdata Methods and Practice (cemmap), London
Abstract: 
For vectors x and w, let r(x,w) be a function that can be nonparametrically estimated consistently and asymptotically normally. We provide consistent, asymptotically normal estimators for the functions g and h, where r(x,w) = h[g(x),w], g is linearly homogeneous and h is monotonic in g. This framework encompasses homothetic and homothetically separable functions. Such models reduce the curse of dimensionality, provide a natural generalization of linear index models, and are widely used in utility, production, and cost function applications. Extensions to related functional forms include a generalized partly linear model with unknown link function. We provide simulation evidence on the small sample performance of our estimator, and we apply our method to a Chinese production dataset.
Subjects: 
Cost Function , Economies of Scale , Homogeneous Function , Homothetic Function , Index Models , Nonparametric , Production Function , Separability
JEL: 
C14
C21
D24
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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