Skip to main content

Regional Cost Function Analysis of the Logging Industry in the Pacific Northwest and Southeast

Buy Article:

$29.50 plus tax (Refund Policy)

Abstract:

Nonhomothetic translog cost functions with two variable inputs, labor and capital, were estimated to compare the underlying production structure of the logging industry in the Pacific Northwest and Southeast regions of the United States from 1963 to 1992. The parent cost function and capital share equation for each region were estimated using Maximum Likelihood Estimation techniques. Both equations were significantly different between regions. The industry in both regions was capital-using over the study period. Labor and capital were substitutes in each region, but substitution possibilities were limited. Input substitution was more elastic in the Southeast, and therefore the industry in the Southeast would be better able to adjust to changes in input prices or output demand. Additional tests determined that homothetic, homogeneous, and time invariant functions would be inappropriate for the logging industry in either region. For. Sci. 44(4):517-525.

Keywords: SIC 2411; Translog cost function; cross-price demand elasticities; input substitution; own-price factor demand elasticities

Document Type: Journal Article

Affiliations: Box 9681, Forestry Department, Mississippi State University, MS 37962--Phone: (601) 325-4546;, Fax: (601) 325-8726

Publication date: November 1, 1998

More about this publication?
  • Membership Information
  • ingentaconnect is not responsible for the content or availability of external websites
saf/fs/1998/00000044/00000004/art00006
dcterms_title,dcterms_description,pub_keyword
6
5
20
40
5

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
X
Cookie Policy
ingentaconnect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more