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Analysis of the Returns to Scale, Elasticities of Substitution and Behavior of Shipping (General Cargo) Production

  • Pablo Coto-Millán
  • José Baños-Pino
  • Miguel Ángel Pesquera
  • Pedro Casares
  • Juan Castanedo
Chapter
Part of the Contributions to Economics book series (CE)

Abstract

The empirical analysis of production functions can be directed at least in two different ways which may have the same results. Firstly, we may directly assume a particular and flexible production function, and then test the different restrictions stage by stage, in order to find the most suitable functional form. An alternative way would be to assume cost, profit or input conditioned demand functions, which, after satisfying the corresponding duality theorems must provide the same information as the production function. Therefore, if the production integrability problem allows us to change from a cost function – for instance – to a production function, the technology can be perfectly detected from such a cost function. In this study, I will use the former method in which a flexible functional form such as the logarithmic transcendental or translog is directly assumed, which allows us to execute different parametrical tests of the various properties of the production technology. This choice requires information about the amount of output and of productive input. Some interesting results can be obtained from this function, such as the input elasticities of substitution, the returns to scale of the production function, the marginal products of inputs, the output elasticities and different economic hypotheses.

Keywords

Production Function Output Elasticity Linear Separability Share Equation Ship Owner 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. Coto-Millán P (1990) Determinants of private demand for sea transport in relation to the international market: an empirical approach. University of Oviedo, Department of Economics. Working paperGoogle Scholar
  2. Coto-Millán P (1995) The conditioned demands of Spanish sea transport 1975–1990. Department of Economics. Working paperGoogle Scholar
  3. Coto-Millán P (1996a) Derived demands for ‘general cargo’ shipping in Spain, 1975–1992, an economic approach. Appl Econ Lett 3:175–178CrossRefGoogle Scholar
  4. Coto-Millán P (1996b) Maritime transport policy in Spain (1974–1995). Transport policy. vol 3. Unit of Transport Studies, Oxford University, pp 37–41Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2010

Authors and Affiliations

  • Pablo Coto-Millán
    • 1
  • José Baños-Pino
    • 2
  • Miguel Ángel Pesquera
    • 1
  • Pedro Casares
    • 1
  • Juan Castanedo
    • 1
  1. 1.University of CantabriaSantanderSpain
  2. 2.University of OviedoOviedoSpain

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