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An Application of the Shephard Duality Theorem: A Generalized Leontief Production Function
Abstract
The paper indicates how the Shephard duality theorem may be utilized in order to obtain a system of derived demand equations which are linear in the technological parameters, thus facilitating econometric estimation. This theorem states that technology may be equivalently represented by either a production function or a cost function, and a proof of the theorem is given. The chosen functional form is a quadratic form in the square roots of input prices and is a generalization of the Leontief cost function. The generalization has the property that it can attain any set of partial elasticities of substitution using a minimal number of parameters.
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Citations
Cited by
Chapter 17 Empirical studies of industries with market power
Bresnahan, T. F. (1989) · Handbook of Industrial Organization · doi:10.1016/s1573-448x(89)02005-4 · Cited by 1,271
The estimation of the degree of oligopoly power
Appelbaum, E. (1982) · Journal of Econometrics · doi:10.1016/0304-4076(82)90006-9 · Cited by 462
On the choice of functional form in stochastic frontier modeling
Giannakas, K., Tran, K. C., & Tzouvelekas, V. (2003) · Empirical Economics · doi:10.1007/s001810100120 · Cited by 104
International Evidence on Sectoral Interfuel Substitution
Serletis, A., Timilsina, G. R., & Vasetsky, O. (2010) · The Energy Journal · doi:10.5547/issn0195-6574-ej-vol31-no4-1 · Cited by 57
Marchand, S. (2012) · Ecological Economics · doi:10.1016/j.ecolecon.2012.02.025 · Cited by 46
Metadata
- Authors
- Diewert, W. E.
- Venue
- Journal of Political Economy
- Publisher
- University of Chicago Press
- Published
- 1971-05
- Volume
- 79
- Issue
- 3
- Pages
- 481-507
- ISSN
- 0022-3808 (ISSN-L)
- 1537-534X
- OpenAlex
- W2170251776
- Cited by
- 1,091
- References
- 0
- FWCI
- 16.35
- Type
- journal article
- Language
- en
- Open access
- closed
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- CoChat. (2026). Citation check: An Application of the Shephard Duality Theorem: A Generalized Leontief Production Function. https://app.cochat.ai/papers/10.1086/259764
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- Diewert, W. E. (1971). An Application of the Shephard Duality Theorem: A Generalized Leontief Production Function. Journal of Political Economy. https://doi.org/10.1086/259764
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