Input separability in estimating translog cost function

Abstract

The objective of this paper is to evaluate the aggregation of production factors in a variable called Inputs in coffee production in Brazil. A translog cost function and a separability test are used, based on estimates of the Allen-Uzawa partial elasticity of substitution. The results demonstrate the possibilities of input separability analyses. Input substitutability relations and other effects, such as exchange rate devaluation, on each production factor, can be examined.