snqProfitWeights           package:micEcon           R Documentation

_S_N_Q _P_r_o_f_i_t _f_u_n_c_t_i_o_n: _W_e_i_g_h_t_s _o_f _p_r_i_c_e_s _f_o_r _n_o_r_m_a_l_i_z_a_t_i_o_n

_D_e_s_c_r_i_p_t_i_o_n:

     Returns a vector of weights to normalize prices on a Symmetric
     Normalized  Quadratic (SNQ) Profit function.

_U_s_a_g_e:

     snqProfitWeights( pNames, qNames, data, method = "DW92", base = 1 )

_A_r_g_u_m_e_n_t_s:

  pNames: a vector of strings containing the names of netput prices.

  qNames: a vector of strings containing the names of netput
          quantities.

    data: a data frame containing the data.

  method: the method to determine the weights (see details).

    base: the base period(s) for scaling prices (see details).

_D_e_t_a_i_l_s:

     If argument 'method' is 'DW92' the method of Diewert and Wales
     (1992) is applied. They predetermine the weights by

 theta_{i} = frac{ displaystyle <=ft | overline{x}_{i} right| p_{i}^{0} }{ displaystyle sum_{i=1}^{n} <=ft| overline{x}_{i} right| p_{i}^{0}}


     Defining the scaled netput quantities as widetilde{x}_{i}^{t} & =
     & x_{i}^{t}cdot p_{i}^{0} we get following formula:


 theta_{i} = frac{ displaystyle  <=ft| overline{ widetilde{ x } }_{i} right|}{ displaystyle sum_{i=1}^{n} <=ft| overline{ widetilde{ x } }_{i} right|}


     The prices are scaled that they are unity in the base period or -
     if there is more than one base period - that the means of the
     prices over the base periods are unity. The argument 'base' can be
     either 
      (a) a single number: the row number of the base prices, 
      (b) a vector indicating several observations: The means of these
     observations are used as base prices, 
      (c) a logical vector with the same length as the 'data': The
     means of the observations indicated as 'TRUE' are used as base
     prices, or (d) 'NULL': prices are not scaled.

_A_u_t_h_o_r(_s):

     Arne Henningsen ahenningsen@agric-econ.uni-kiel.de

_S_e_e _A_l_s_o:

     'snqProfitEst'.

_E_x_a_m_p_l_e_s:

        data( germanFarms )
        germanFarms$qOutput   <- germanFarms$vOutput   / germanFarms$pOutput
        germanFarms$qVarInput <- -germanFarms$vVarInput / germanFarms$pVarInput
        germanFarms$qLabor    <- -germanFarms$qLabor
        pNames <- c( "pOutput", "pVarInput", "pLabor" )
        qNames <- c( "qOutput", "qVarInput", "qLabor" )
        snqProfitWeights( pNames, qNames, germanFarms )

