Estimating State-contingent Production Frontiers
Data(s) |
01/01/2005
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Resumo |
Chambers and Quiggin (2000) use state-contingent representations of risky production technologies to establish important theoretical results concerning producer behavior under uncertainty. Unfortunately, perceived problems in the estimation of state-contingent models have limited the usefulness of the approach in policy formulation. We show that fixed and random effects state-contingent production frontiers can be conveniently estimated in a finite mixtures framework. An empirical example is provided. Compared to conventional estimation approaches, we find that estimating production frontiers in a statecontingent framework produces significantly different estimates of elasticities, firm technical efficiencies and other quantities of economic interest. |
Identificador | |
Idioma(s) |
eng |
Publicador |
Economic Society of Australia |
Palavras-Chave | #EX #340402 Econometric and Statistical Methods #780101 Mathematical sciences #1402 Applied Economics #1403 Econometrics |
Tipo |
Conference Paper |