If estimatedĮconometrically from data on observed outputs and input usage, it indicates theĪverage level of outputs that can be produced from a given level of inputs The underlying theoryĪ production function defines the technological relationshipīetween the level of inputs and the resulting level of outputs. Outputs that take zero values (Paul, Johnson and Frengley, 2000). Requires stochastic multiple output distance functions, and raises problems for Model multiple output technologies, doing so is somewhat more complicated, A disadvantage of the technique is that, although it can Measure is more consistent with the potential harvest under normal Over DEA is that random variations in catch can be accommodated, so that the A potential advantage of the stochastic production frontier approach Modification of the inputs incorporated in the production (or distance)įunction. However, the technique also can be applied to capacity estimation through Stochastic production frontiers were initially developed forĮstimating technical efficiency rather than capacity and capacity utilization. APPENDIX C: STOCHASTIC PRODUCTION FRONTIERS
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |