I really appreciate if anyone can help. I am stuck.
I am using coefficients of the translog cost function to calculate marginal cost of each bank. Attached file shows the function that I use translog cost function.docx . My dataset is a panel dataset, so I have to include bank dummies in the cost function.
I do not know what are the Stata commands for imposing linear homogeneity and symmetry restrictions on input prices(W1, W2) of a translog cost function. And how do I run the estimation, including bank dummies?
Thank you.
I am using coefficients of the translog cost function to calculate marginal cost of each bank. Attached file shows the function that I use translog cost function.docx . My dataset is a panel dataset, so I have to include bank dummies in the cost function.
I do not know what are the Stata commands for imposing linear homogeneity and symmetry restrictions on input prices(W1, W2) of a translog cost function. And how do I run the estimation, including bank dummies?
Thank you.
