Dale Jorgenson

Samuel W. Morris University Professor

Econometrics, Volume One, Table of Contents

Contents

List of Tables				xi
Preface				xiii
List of Sources				xxxi

1	Econometric Methods for Modeling producer Behavior			1
	Dale W. Jorgenson
	1.1		Introduction	1
	1.2		Price Functions	8
	1.3		Statistical Methods	20
	1.4		Applications of Price Functions	31
	1.5		Cost Functions	45
	1.6		Applications of Cost Functions	45
	1.7		Conclusion	63

2	Empirical Studies of Depreciations			73
		Dale W. Jorgenson
		2.1	Econometric Models	75
		2.2	Studies of Depreciations	81
		2.3	Applications	87
		2.4	Conclusion	93

3 An Economic Theory of Agricultural Household Behavior				97
		Dale W. Jorgenson and Lawrence J. Lau
		3.1 Introduction		97
		3.2 The Welfare Function		98
		3.3 The Utility Functions		108
		3.4 The Technology		109
		3.5 The Constraints		112
		3.6 The Complete Model		115
		3.7 An Example of Functional Form Econometric Implementation: Utility Function and Cobb-Douglas production Function		122

4 Transcendental Logarithmic Production Frontiers				125
		Laurits R. Christensen, Dale W. Jorgenson and Lawrence J. Lau
		4.1 Introduction		125
		4.2 Additivity and Homogeneity		127
		4.3 Transcendental Logarithmic Frontiers		134
		4.4 Testing the Theory of Production		138
		4.5 Empirical Results		146
		4.6 Summary and Conclusion		153

5 The Duality of Technology and Economic Behavior				159
		Dale W. Jorgenson and James A. Stephenson
		5.1 Introduction		159
		5.2 Technology		160
		5.3 Economic Behavior		170
		5.4 Duality		177
		5.5 Conclusion		182
		5.6 Historical Note		185

6 Duality and Differentiability in Production				189
		Dale W. Jorgenson and Lawrence J. Lau
		6.1 Introduction		189
		6.2 Differentiability		190
		6.3 Duality		194
		6.4 Production Possibilities		198
		6.5 Extensions		202

7 Efficient Estimation of Nonlinear Simultaneous Equations with Additive Disturbances				209
		Dale W. Jorgenson and Jean-Jacques Laffont
		7.1 Introduction		209
		7.2 The Model		211
		7.3 Cramer-Rao Bound		212
		7.4 Minimum Distance		222
		7.5 Instrumental Variables		229
		7.6 Efficiency		232

8 Tests of a Model of Production for the Federal Republic of Germany, 1950-1973				241
		Klaus Conrad and Dale W. Jorgenson
		8.1 Introduction		241
		8.2 Translog Production and Price Functions		242
		8.3 Integrability		247
		8.4 Monotonicity and Convexity of Translog Functions		249
		8.5 Tests of the Theory of Production		252
		8.6 Estimation and Test Statistics		255
		8.7 Economic Interpretation		260

9 The Structure of Technology: Nonjointness and Commodity Augmentation, Federal Republic of Germany, 1950-1973				267
		Klaus Conrad and Dale W. Jorgenson
		9.1 Introduction		267
		9.2 Translog Production and price Functions		269
		9.3 Nonjointness		273
		9.4 Technical Change		277
		9.5 Tests		281
		9.6 Estimation and Test Statistics		283
		9.7 Conclusion		286

10 The Structure of Technology and Changes of Technology over Time, Federal Republic of Germany, 1950-1973				291
		Klaus Conrad and Dale W. Jorgenson
		10.1 Introduction		291
		10.2 Separability		295
		10.3 Technical Change		298
		10.4 Tests		301
		10.5 Estimation and Test Statistics		303
		10.6 Conclusion		307
		10.6 Summary		310

11 Statistical Inference for a System of Simultaneous, Nonlinear, Implicit Equations in the Context of Instrumental Variable Estimation				311
		A. Roland Gallant and Dale W. Jorgenson
		11.1 Introduction		311
		11.I Three-Stage Least-Squares Estimation		313
		11.2 The Statistical Model Subject to a Maintained Hypothesis		313
		11.3 The Test Statistics: An Analog of the Likelihood Ratio Test		315
		11.4 Regularity Conditions		316
		11.5 The Asymptotic Distribution		317
		11.6 The Wald Test		323
		11.7 The Asymptotic Distribution		324
		11.8 An Example: The Hypothesis of Symmetry		326
		11.II Two-Stage Least-Squares Estimation		329
		11.9 The StatisticAL Model		329
		11.10 The Test Statistic: An Analog of the Likelihood Ratio Test		330
		11.11 Regularity Conditions		331
		11.12 The Asymptotic Distribution		332
		11.13 The Wald Test		333
		11.14 The Asymptotic Distribution		333
		11.15 An Example: The Hypothesis of Homogeneity		334
		Appendix		334

12 Investment Behavior in U.S. Regulated Industries				341
		Dale W. Jorgenson and Barbara Fraumeni
		12.1 Introduction		341
		12.2 Econometric Models		344
		12.3 Empirical Results		354
		12.4 Conclusion		369
13 Relative Price Changes and Biases of Technical Change in Japan				373
		Masahiro Kuroda, Kanji Yoshioka, and Dale W. Jorgenson
		13.1 Introduction		379
		13.2 Theoretical Framework		379
		13.3 Design of Experiment and Data Sources		388
		13.4 Estimated Results		392
14 The Role of Energy in Productivity Growth				403
		Dale W. Jorgenson
		14.1 Introduction		403
		14.2 Theoretical Framework		408
		14.3 Summary and Conclusion		437
		14.4 Appendix		442
15 Bilateral Models of Production for Japanese and U.S. Industries				457
		Dale W. Jorgenson, Masahiro Kuroda, Hikaru Sakuramoto, and Kanji Yoshioka
		15.1 Introduction		457
		15.2 Theoretical Framework		458
		15.3 Empirical Results		462
		15.4 Conclusion		472
		Appendix A		476
		Appendix B		480

References				489
Index				527