Abstract
This paper considers a generalised translog cost function, which takes cart of distortions in factor markets due to the regulatory environment in Pakistan's. large-scale manufacturing sector. The paper explores the nature of allocative inefficiencies and evaluates elasticities by employing pooled provincial time-series data of Sindh and Punjab from the CMI. The paper rejects the use of neoclassical assumption of perfect competition in input markets as a maintained hypothesis and argues that price and substitution elasticities produced by previous studies, without incorporating allocative inefficiencies, may be misleading.
Mahmoodul Hassan KHAN. (2000) ESTIMATING ALLOCATIVE EFFICIENCY AND ELASTICITIES OF SUBSTITUTION IN THE LARGESCALE MANUFACTURING SECTOR OF PAKISTAN, Pakistan Journal of Applied Economics, Volume-16, Issue-1.
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