The computation of opportunity costs in polychotomous choice models with selectivity
Article Abstract:
A general method for computing opportunity costs for sample selection models with polychotomous choices is given. Opportunity costs for individuals who did not choose alternatives are derived by measuring observed choice probabilities and the results of alternatives chosen by some individuals. The formulas can be used in empirical studies.
Publication Name: Review of Economics and Statistics
Subject: Mathematics
ISSN: 0034-6535
Year: 1995
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On the effect of opportunity cost on international reserve holdings
Article Abstract:
Most studies have failed to estimate the effect of opportunity cost of the demand for reserves because this is not measured as the difference between the real rate of return on capital and on reserves. Using 1968-88 data for Israel, proper estimation of this cost reveals the vital role it plays as a determinant of reserve demand.
Publication Name: Review of Economics and Statistics
Subject: Mathematics
ISSN: 0034-6535
Year: 1992
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A composite cost function for multiproduct firms with an application to economies of scope in banking
Article Abstract:
The log-quadratic input price structure is combined with a quadratic output structure in a new model called the composite cost function. The composite cost function being proposed is applicable for multiproduct firms where economies of scope, product specific economies of scale and subadditivity are to be examined.
Publication Name: Review of Economics and Statistics
Subject: Mathematics
ISSN: 0034-6535
Year: 1992
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