in general the Leontief cost function is represented as:


where: $$y=\min\left[{\frac{x_1}{\alpha_1},...,\frac{x_n}{\alpha_n}}\right]$$

How does one go about estimating this econometrically if one does not know the underlying production function a firm exhibits (i.e we know the amount of $y$ produced however we don't know if the production technology is $\min\left[{\frac{x_1}{\alpha_1},...,\frac{x_n}{\alpha_n}}\right]$)?


Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.