How To Estimate Translog Cost Function Using Stata

[Gideon Ndubuisi]

Dear All,

I am trying to estimate a trans-log cost function in my studies. Although I have read some background literature, I am yet unaware on how to apply it in Stata. My online search for possible resources that can direct me on how to implement it in Stata proved abortive.

Particularly, I intend to estimate a cost function with three factor inputs capital, labor, and intermediates.

I will appreciate any assistance or direction on how to go about this in Stata.

[Phil Bromiley]

You'll increase your chances of a helpful answer by following the FAQ on asking questions - provide Stata code in code delimiters, readable Stata output, and sample data using dataex. Also, we do not favor screen shots - not much we can do with them.

Look at the nl command which does non-linear least squares estimation. Also, search on this listserve, the old Statalist archives, and google translog and Stata - this has been discussed previously.

[Gideon Ndubuisi]

Thanks alot

[Ishan Anand]

Hi Gideon, were you able to find an answer to this question? I am doing something similar..

[Gideon Ndubuisi]

Hi Ishan ... Not yet .. still reading around it though