Theoretical Economics Letters > Vol.5 No.4, August 2015

Ekaterina Vorotnikova¹, Serhat Asci²

¹Agricultural Economics and Rural Sociology Department, University of Idaho, Moscow, ID, USA.
²Department of Agricultural Business, California State University, Fresno, CA, USA.

Empirical estimation of a theoretical multi-output production model that uses multiple inputs is difficult because of the complexities of its functional form. By using proper parameterization to linearize theoretical model’s functional form, this paper develops an empirical estimation for multi-output production decision using multiple inputs in the profit maximizing firm, namely, multi-output production decision model. The model aligns with the dual approach of cost minimization and revenue maximization for the profit maximizing multi-product firm while keeping jointness in production structurally intact.

Multiproduct Firm, Multi-Output Production Decision, Differential Production Component

Vorotnikova, E. and Asci, S. (2015) An Empirical Multi-Output Production Decision Model for the Profit Maximizing Multiproduct Firm. Theoretical Economics Letters, 5, 555-560. doi: 10.4236/tel.2015.54065.