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A Programming Approach To Estimate Production Functions Using Bounds On The True Production Set

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  • Lambert, David K.

Abstract

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.

Suggested Citation

  • Lambert, David K., 1997. "A Programming Approach To Estimate Production Functions Using Bounds On The True Production Set," Discussion Papers 12956, University of Nevada at Reno, Department of Resource Economics.
    • Handle: RePEc:ags:unredp:12956
    DOI: 10.22004/ag.econ.12956
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    References listed on IDEAS

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