A translog estimation of the average cost function of the steel industry with financial accounting data

被引：8

作者：

Stratopoulos T. ^{[1
]}

Charos E. ^{[2
]}

Chaston K. ^{[3
]}

机构：

[1] University of New Hampshire,

[2] Merrimack College,undefined

[3] Davidson College,undefined

来源：

International Advances in Economic Research | 2000年 / 6卷 / 2期

关键词：

Cost Function; Firm Performance; Average Cost; Steel Industry; Production Theory;

D O I：

10.1007/BF02296108

中图分类号：

学科分类号：

摘要：

This paper proposes a measure to assess firm performance which is based in neoclassical production theory and yet can be empirically estimated with widely available financial accounting ratios. A translog cost function is estimated, and fitted per-unit average cost figures are generated based upon the firm’s individual characteristics and industry norms. The deviation of a firm’s actual average per-unit cost from the fitted value is proposed as a predictor of firm profitability. This measure is then tested on firms in the steel industry. It is shown that the accounting ratios generate a cost function which behaves in accordance with neoclassical microeconomic theory, and accounting profits are indeed found to be inversely related to the calculated efficiency measure. (JEL D21, G30, Mil, M41).

引用

页码：271 / 286

页数：15

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