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C. Translog (Transcendental Logarithmic) Production Function

where L = labour, K = capital, M = materials and supplies, and q = product.

where L = labour, K = capital, M = materials and supplies, and q = product. The parameter nu is a measure of the economies of scale, while the parameter rho yields the elasticity of substitution: **sigma = 1/(1 + rho).**

The estimated coefficients of the Translog production and cost functions will vary with the parameters sigma, nu, alpha, beta and gamma of the CES production function.

Set the parameters below to re-run with your own CES parameters.