Theoretical fundamentals of transcendental logarithmic cost function for airline

Authors

  • O. V. Marusych National Aviation University
  • V. S. Konovaliuk National Aviation University

Keywords:

транслогарифмічна функція витрат, однорідність, неперервність, еластичність заміщення, економія розміру, економія щільності, функції частки витрат

Abstract

The problems of construction of function of expenses of airline are investigated in the article. Basic properties and limitations of the use of this function of expenses are investigated. It is shown, how translogarithmic function can be used for the estimation of elasticity of substitution, measuring of general dynamics of the productivity of factors, economy of size and closeness of network of airline.

Author Biographies

O. V. Marusych, National Aviation University

Post-Graduate Student, Assistant of the Chair of Economic Cybernetics

V. S. Konovaliuk, National Aviation University

Cand. Sc. (Fіz-Mat.), Assistant professor of the Chair of Higher Mathematic

References

1. Varian R. Microeconomic Analysis / R. Varian. — New York : W. W. Norton & Company, 2011. — 1024 p.
2. Ray S. C. A Translog Cost Function Analysis of U. S. Agriculture / S. C. Ray // American Journal Agricultural Economics.
— 1982. — № 62. — P. 490—498.
3. Geoffrey A. Advanced Microeconomic Theory / Jehle, A. Geoffrey. — Englewood Cliffs, NJ : Prentice Hall, 1991. — 567 p.
4. Douglas W. Flexible Cost Functions for Multiproduct Firms / W. Douglas, W. Christensen // Review of Economics and
Statistics, 1980. — № 62. — P. 477—481.
5. Borts H. The Estimation of Rail Cost Functions / H. Borts // Econometerica : Journal of the Econometric. — 1960. —
№ 28. — P. 108—131.

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How to Cite

[1]
O. V. Marusych and V. S. Konovaliuk, “Theoretical fundamentals of transcendental logarithmic cost function for airline”, Вісник ВПІ, no. 4, pp. 31–35, Aug. 2014.

Issue

No 4 (2014)

Section

Economics and management

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