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A Parametric Model of Stochastic Production

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  • Nelson, Carl

Abstract

A parametric model of stochastic production is proposed and demonstrated. The parametric model treats output as a random variable with a distribution that is conditional on inputs. Maximum likelihood estimation of the model is shown to produce consistent and asymptotically efficient estimates.

Suggested Citation

  • Nelson, Carl, 1986. "A Parametric Model of Stochastic Production," 1986 Annual Meeting, July 27-30, Reno, Nevada 278108, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea86:278108
    DOI: 10.22004/ag.econ.278108
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    File URL: https://ageconsearch.umn.edu/record/278108/files/aaea-1986-069.pdf
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    References listed on IDEAS

    as
    1. Ralph R. Botts & James N. Boles, 1958. "Use of Normal-Curve Theory in Crop Insurance Ratemaking," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 40(3), pages 733-740.
    2. Richard E. Just & Rulon D. Pope, 1979. "Production Function Estimation and Related Risk Considerations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(2), pages 276-284.
    3. Jerome M. Wolgin, 1975. "Resource Allocation and Risk: A Case Study of Smallholder Agriculture in Kenya," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(4), pages 622-630.
    4. Antle, John M, 1983. "Testing the Stochastic Structure of Production: A Flexible Moment-based Approach," Journal of Business & Economic Statistics, American Statistical Association, vol. 1(3), pages 192-201, July.
    5. White, Halbert, 1982. "Maximum Likelihood Estimation of Misspecified Models," Econometrica, Econometric Society, vol. 50(1), pages 1-25, January.
    Full references (including those not matched with items on IDEAS)

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