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Translog cost function using foreach and one_id program
Translog cost function using foreach and one_id program

Hi,

I have a panel of 270 firms with quarterly observations ranging from year 2000 to 2019.

I want to run the following trans-log cost function for each of the firm using foreach and one_id program. Can anyone inform me of the correct syntax please as mine did not work and gave errors for all groups.

lnTC = a+ a₁lnW12 +1/2 a₂lnW3+ a₃lnW12 *lnW3+ a₄lnTA + 1/2a₅(lnTA)² +a₆lnTA*lnW12+ a₇lnTA*lnW3 + e

where, a denotes alpha (coefficients) in the above equation. TC=total cost, W12 and W3 are the prices of labor and capital, TA = total assets, e is the error term

Regards

BJ Data Tech Solution

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