<p>You will gain in flexibility and generality by adding more terms and avoid to impose restrictions on substitution between inputs and returns to scale, that are usually rejected (when tested).</p>

CC BY-SA 4.0
2019-01-06T20:51:25.470Z
2019-01-06T20:51:25.470Z
Bertrand
<p>I've been reading about the translog production function and know its really just a log-log production function approximated using a first order maclauren series.</p>

<p>Why not just leave the function as is? What economic interpretation or use does taking taylor series do for us?</p>

<econometrics><mathematical-economics><production-function>
Whats the rationale for using taylor series in economics?
EconJohn
# Whats the rationale for using taylor series in economics?

(Asked by: username_0 on 2018-11-20)

I've been reading about the translog production function and know its really just a log-log production function approximated using a first order maclauren series.

Why not just leave the function as is? What economic interpretation or use does taking taylor series do for us?

**Tags:** econometrics, mathematical-economics, production-function


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## 1 answers

### Answer by username_1 on 2019-01-06. Score: 2

You will gain in flexibility and generality by adding more terms and avoid to impose restrictions on substitution between inputs and returns to scale, that are usually rejected (when tested).


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