To cehck the details please check Advanced Microeconomic Theory by Geoffrey A. Adding differentiability, you can find an optimal production plan by using derivatives. In really raw terms, quasiconcavity guarantees there is a production plan where the company is minimizing cost. In particular, any concave and twice continuously differentiable function is quasiconcave. Package lmtest provides resettest, a function that provides one of the many versions of the test, and it fits this model by default: RESET test (the name stands for Regression Equation Specification Error Test) is a test for functional form misspecification.Īs a general test, RESET helps detecting ommited variables. Ideally, I should find a model with positive predicted output and positive factor elasticity to make sense of the context of production I’m working with. These four specifications presented different problems that suggested model misspecification. + I(log(qCap)*log(qMat)) + I(log(qLab)*log(qMat)), data = data) ProdTL = lm(log(qOut) ~ log(qCap) + log(qLab) + log(qMat) + I(0.5*log(qCap)^2) ProdCD = lm(log(qOut) ~ log(qCap) + log(qLab) + log(qMat), data = data) + I(qCap*qLab) + I(qCap*qMat) + I(qLab*qMat), data = data) ProdLin = lm(qOut ~ qCap + qLab + qMat, data = data)
Library(stats4) #this is a base package so I don't install thisĭata("appleProdFr86", package = "micEcon") #install.packages(c("micEcon","lmtest","bbmle","miscTools")) This is what I need to retake the previously explained examples: # Libraries In the first part of this article I explained and compared four different functional forms to model apples’ production.
0 kommentar(er)
