The translog growth model

A translog production function for the Spanish provinces: Impact of the human and physical capital in economic growth

“…It is possible to provide this production function with greater flexibility by adding third-order terms to the translog function, as proposed in Ostbye (2010) This production function may be approximated through a Taylor series of third order. If we convert the data again to deviations from the geometric mean and to first differences, and if we consider likewise that the evolution of the technological progress is expressed according to [6], the extended translog production function may be expressed as follows:…”

“…To do this, an aggregate translog production function is estimated for the Spanish provinces for the period 1985 to 2006. According to Ostbye (2010), the translog function is more convenient than the CES (constant elasticity of substitution) function, because the former is more flexible as it allows the substitution elasticity to vary along with capital intensity. The output elasticities of the productive factors, which vary throughout provinces and time, are calculated from the estimated parameters.…”

“…However, the translog function may not be flexible enough to observe the changes in productivity elasticities of the different types of capital, since with the usual translog function, the elasticity varies with changes in factor endowments. According to Ostbye (2010), it is possible to make the translog function more flexible by adding third-order terms. These, which were used previously, for instance, in studies that analyze the existence of the environmental Kuznet's curve and the relations between energy and economic growth (Luzzati and Orsini, 2009), permit analysis of whether there are differences in the elasticities for different levels of factors endowments and therefore allowing to check if there are increasing, decreasing or constant returns to scale of each factor for each level of that factor.…”

Multiple Thresholds in the Nexus Between Working Hours and Productivity

“…We also estimate the translog production function which is obtained by a second‐order approximation using Taylor series (Christensen et al ). The translog production function is more flexible and more general than the Cobb‐Douglas production function, since it allows interaction among the input factors (Østbye ). Anxo and Bigsten () estimate both the Cobb‐Douglas and the translog production functions, and find that the elasticities of output to working hours may differ significantly depending upon the functional forms used in the estimation .…”

The Identification of Directed Technical Change Revisited

“…Along a translog function it corresponds to (see also Ostbye (2010) for the case without technical progress):…”