Una función de demanda de importaciones para la Argentina

Abstract

The purpose of this paper its estimate for Argentina an aggregate transcendental algorithmic cost function which includes imports as a factor of production. We assume that the technology is described by a joint cost function and that the producing sector combines capital aid labor with imported materials to minimize the cost of producing a specified bindle of consumption and investment goods, which are purchased either by domestics or foreigners. A translog multi-product cost functíon is estimated jointly with two derived factor cost share equations and with a revenue share equation. The entire derived system is estimated simultaneously imposing the appropriate symmetry and hemogeneity restrictions. Not only does this procedure allow us to obtain estimates of import function without relying on the restrictive assumption that outputs and domestic factors can he aggregated, but it also yields some insight about the substitution possibilites inherent in the technology.