Maximum likelihood estimation of the revenue function system with output-specific technical efficiency

C-Tier
Journal: Economics Letters
Year: 2016
Volume: 138
Issue: C
Pages: 42-45

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In this paper we propose a non-radial and output-specific measure of technical efficiency which is new in a stochastic frontier model. We consider a multi-output multi-input transformation function formulation that incorporates output-specific technical efficiency (OSTE) in a revenue maximizing framework. Starting from the dual revenue function with OSTE, we develop the maximum likelihood method to estimate the parameters of the translog revenue-share system as well as predict OSTE components using some novel results from the closed skew-normal distribution.

Technical Details

RePEc Handle
repec:eee:ecolet:v:138:y:2016:i:c:p:42-45
Journal Field
General
Author Count
2
Added to Database
2026-01-25