A PROGRAMMING APPROACH TO ESTIMATE PRODUCTION FUNCTIONS USING BOUNDS ON THE TRUE PRODUCTION SET

Varian (1984) developed procedures to establish bounds on a true convex negative monotonic production set that p-rationalizes a set of data consistent with the weak axiom of profit maximization. These bounds can provide additional information for estimating parametric production functions. A mathematical programming procedure is developed to maximize various measures of goodness of fit of alternative parametric specifications relative to the true production set.


Issue Date:
1997
Publication Type:
Working or Discussion Paper
Record Identifier:
http://ageconsearch.umn.edu/record/12956
PURL Identifier:
http://purl.umn.edu/12956
Total Pages:
30
Series Statement:
Discussion paper APES97-01




 Record created 2017-04-01, last modified 2018-01-22

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