An empirical input allocation model for the cost minimizing multiproduct firm

•We focus on the multiproduct firm that minimizes cost before maximizing profit.•A linear parameterization of the theoretical input allocation model is derived.•From the linear parameterization, we formulate an empirical input allocation model.•In general form, the empirical model allows for joint production.•Input-output separability and input independence can be tested empirically.

Laitinen and Theil (1978) derive a theoretical input allocation model for a multiproduct firm that first minimizes cost and second maximizes profit. However, its empirical counterpart is not available. We linearize the model and derive a general empirically estimable model.