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Estimating Non-Parametric And Parametric Transformation Functions From Survey Data: An Application Of Minimum Cross-Entropy

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  • Hoveid, Oyvind

Abstract

A model of a (convex) technology of representative and non-representative firms in a heterogeneous sector is presented in non-parametric and parametric versions. The heterogeneity is specified with error terms. The models including a non-parametric distribution of the errors can be estimated with entropy econometrics from firm survey data. This requires two important modifications in the standard approach to entropy estimation of Golan, Judge and Miller: The compact support of the probability distribution should be designed to capture eventual non-zero covariance. And cross-entropy need to be redefined for cases of multiple observations.

Suggested Citation

  • Hoveid, Oyvind, 2000. "Estimating Non-Parametric And Parametric Transformation Functions From Survey Data: An Application Of Minimum Cross-Entropy," 2000 Annual meeting, July 30-August 2, Tampa, FL 21851, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea00:21851
    DOI: 10.22004/ag.econ.21851
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    References listed on IDEAS

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    1. Varian, Hal R, 1984. "The Nonparametric Approach to Production Analysis," Econometrica, Econometric Society, vol. 52(3), pages 579-597, May.
    2. Quirino Paris & Richard E. Howitt, 1998. "An Analysis of Ill-Posed Production Problems Using Maximum Entropy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 124-138.
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