On functional form representation of multi-output production technologies

Springer Science and Business Media LLC - Tập 33 - Trang 81-96 - 2009
Rolf Färe1, Carlos Martins-Filho2,3, Michael Vardanyan4
1Department of Economics and Department of Agricultural and Resource Economics, Oregon State University, Corvallis, USA
2Department of Economics, University of Colorado, Boulder, USA
3International Food Policy Research Institute, Washington, USA
4Luxembourg School of Finance, University of Luxembourg, Luxembourg City, Luxembourg

Tóm tắt

The introduction of directional distance functions has given researchers an alternative to Shephard distance functions. In this paper we conduct a Monte Carlo study to investigate the performance of distance functions as an approximation for models of technology. Our results indicate that quadratic representations of technology have better approximation properties than translog parameterizations.

Tài liệu tham khảo

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