The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Cost Functions

  • W. Erwin Diewert
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_659

Abstract

Cost and expenditure functions are widely used in both theoretical and applied economics. Cost functions are often used in econometric studies which describe the technology of firms or industries while their consumer theory counterparts, expenditure functions, are frequently used to describe the preferences of consumers.

Keywords

Cost functions Duality Euler’s theorem Expenditure functions Generalized Leontief cost function Indirect utility function Normalized quadratic cost function Production functions Shephard’s duality theorem Shephard’s lemma Substitutes and complements Translog cost function Unit cost function 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • W. Erwin Diewert
    • 1
  1. 1.Organization NameCityUK