| Summary: | 碩士 === 淡江大學 === 產業經濟學系 === 85 === Development of cost function provides a powerful
analysing tool ineconomic supply side, especially, being a
good contribution to the empiricalstudies. We could find
many literature reviews, and researches of costfunction
that focus on general studies such as inter-factor
elasticity, returns to scale or technological progressing etc.
These empirical results can, of coursely, help us get
understanding the charactertistic of the singlefacters, but
would not show policy-makers the link between facter to
facterto clear out a correct and effective authority.
Development of cost function, the study in energy consuming of
energy-intensive industries gives us the fastand most logical
way.
Based on the flexible functional forms used by most scholars,
this studywould compare the Transcendental Logarithmic cost
function with GeneralizedLeontief cost function. For these
two flexible functional forms areparticularly second-order
approximate function of Cobb-Douglas and Leontief , and the
other reason is that most economic scholars give high
valuation toeach of them. They believe that the GL form
generally performs better in caseswith low elasticities or a
mixture of high and low elasticities, while the TLform is
apparently preferable for high elasticities. So, our topic for
thisstudy will be focused on the different functional forms
may yield quitedifferent results for the same data set and the
same economic assumptions. Itbecomes an important thing that
how to choose a proper function. For now, mostof the primary
energy supply in Taiwan comes from overseas, the policy
ofsaving energy urgently needs to be emphasized and energy
demand quietly needsto be authoritzed. We hope by taking
energy-intensive industry as big target, and probe the effects
of different cost function on factor demand. The
simulated results suggest that the differences of AES between
GL andTL does not ensure the value of one. It said that the
relationship of GL andTL are more uncertain and price
elasticity, substitution elasticity havesignificant
differences, and these may seriously mis-influent. Choosing
aproper cost fuction and pre-investigate are indeed the most
important.
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