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Table 2 Estimation results for restricted cost function

From: Capacity utilization, factor substitution, and productivity growth in Canadian food processing sector

Variable

Coefficient

Estimates

SE

|t-ratio|

P >|t-ratio|

Constant

α0

2.57

0.46

5.63

0.00

lnPl

αl

0.30

0.01

30.67

0.00

lnPe

αe

0.02

0.002

9.10

0.00

lnPm

αM

0.59

0.01

54.42

0.00

lnPs

αs

0.17

0.16

1.07

0.29

lnY

αy

0.46

0.28

1.65

0.01

lnK

βK

0.40

0.31

1.30

0.19

t

αt

− 0.02

0.006

− 3.58

0.00

tsqr

αtt

0.001

0.0001

6.30

0.00

tln(Y/K)

ρty

0.0003

0.008

0.05

0.96

tlnPl

ρtl

− 0.02

0.003

− 6.27

0.00

tlnPe

ρte

0.001

0.001

1.14

0.26

tlnPm

ρtm

0.01

0.002

3.60

0.00

tlnPs

ρts

− 0.003

0.004

0.71

0.48

lnPlsqr

αll

0.15

0.01

13.96

0.00

lnPesqr

αee

0.01

0.001

10.55

0.00

lnPmsqr

αmm

0.22

0.01

16.95

0.00

lnPssqr

αss

0.05

0.01

6.35

0.00

lnPllnPe

ρle

− 0.01

0.002

6.81

0.00

lnPllnPm

ρlm

− 0.14

0.01

13.55

0.00

lnPllnPs

ρls

0.02

0.01

2.83

0.01

lnPelnPm

ρem

− 0.002

0.002

1.16

0.25

lnPelnPS

ρes

0.01

0.003

2.15

0.03

lnPmlnPS

ρms

− 0.08

0.01

12.09

0.00

ln(Y/K)lnPl

ρyl

− 0.04

0.01

2.90

0.00

ln(Y/K)lnPe

ρye

0.01

0.003

0.50

0.62

ln(Y/K)lnPm

ρym

0.02

0.02

1.14

0.25

Ln(Y/K)lnPs

ρys

− 1.77

0.85

2.07

0.04

Breusch–Pagan test of independence

Χ2(6) = 116.34 (P > χ2 = 0.00)

Wald Chi-square test for overall significance

Χ2(24) = 561,766.32, (P > χ2 = 0.00)

  1. There is benefit from estimating the equations jointly since they are not independents as ascertained by the Brueuch and Pagan (1980) test