Estimating state-contingent production frontiers

O'Donnell, C. J. and Griffiths, W. E. (2006) Estimating state-contingent production frontiers. American Journal of Agricultural Economics, 88 1: 249-266. doi:10.1111/j.1467-8276.2006.00851.x

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Author O'Donnell, C. J.
Griffiths, W. E.
Title Estimating state-contingent production frontiers
Journal name American Journal of Agricultural Economics   Check publisher's open access policy
ISSN 0002-9092
Publication date 2006-01-19
Sub-type Article (original research)
DOI 10.1111/j.1467-8276.2006.00851.x
Volume 88
Issue 1
Start page 249
End page 266
Total pages 18
Editor B. W. Brorsen
C. B. Barrett
I. M. Sheldon
S. K. Swallow
Place of publication US
Publisher Blackwell
Collection year 2006
Language eng
Subject C1
340402 Econometric and Statistical Methods
340201 Agricultural Economics
720404 Productivity
1402 Applied Economics
1403 Econometrics
Abstract Chambers and Quiggin (2000) use state-contingent representations of risky production technologies to establish important theoretical results concerning producer behavior under uncertainty. Unfortunately, perceived problems in the estimation of state-contingent models have limited the usefulness of the approach in policy formulation. We show that fixed and random effects state-contingent production frontiers can be conveniently estimated in a finite mixtures framework. An empirical example is provided. Compared to conventional estimation approaches, we find that estimating production frontiers in a state-contingent framework produces significantly different estimates of elasticities, firm technical efficiencies, and other quantities of economic interest.
Keyword Agricultural Economics & Policy
Economics
Finite Mixtures
Gibb's Sampling
Inefficiency
Risk
Uncertainty
Technical Efficiency
Panel-data
Models
Inference
Q-Index Code C1

Document type: Journal Article
Sub-type: Article (original research)
Collections: Excellence in Research Australia (ERA) - Collection
2007 Higher Education Research Data Collection
School of Economics Publications
 
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Citation counts: TR Web of Science Citation Count  Cited 39 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 42 times in Scopus Article | Citations
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Created: Wed, 15 Aug 2007, 07:13:53 EST