Dear Statalist,
I am trying to find the wedge between shadow price and market price using generalized Leontief cost function such that I have Zm = Pm +lambda.
I am including Zm in the data. Pm is price of the input under consideration and lambda is the wedge between Zm and Pm. Which means lambda is a parameter of interest. But my problem is I don't know how to model it to get the estimates for lambda. I would be glad if someone can help. Thanks
I am trying to find the wedge between shadow price and market price using generalized Leontief cost function such that I have Zm = Pm +lambda.
I am including Zm in the data. Pm is price of the input under consideration and lambda is the wedge between Zm and Pm. Which means lambda is a parameter of interest. But my problem is I don't know how to model it to get the estimates for lambda. I would be glad if someone can help. Thanks
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