Introduction to Econometric Production Analysis with R

✍ Scribed by Arne Henningsen

• Publisher: Department of Food and Resource Economics University of Copenhagen
• Year: 2020
• Tongue: English
• Leaves: 401
• Category: Library

✦ Synopsis

This book gives an introduction to several aspects of econometric production analysis. It provides many practical examples using the R statistical software.

✦ Table of Contents

Introduction
Objectives of the course and the lecture notes
An extremely short introduction to R
Some commands for simple calculations
Creating objects and assigning values
Vectors
Simple functions
Comparing values and Boolean values
Data sets (data frames'') Functions Simple graphics Other useful commands Extension packages Reading data into R Linear regression R packages Data sets French apple producers Description of the data set Abbreviating name of data set Calculation of input quantities Calculation of total costs, variable costs, and cost shares Calculation of profit and gross margin Rice producers on the Philippines Description of the data set Mean-scaling quantities Logarithmic mean-scaled quantities Mean-adjusting the time trend Total costs and cost shares Specifying panel structure Mathematical and statistical methods Aggregating quantities Concave and convex functions Quasiconcave and quasiconvex functions Delta method Primal Approach: Production Function Theory Production function Average products Total factor productivity Marginal products Output elasticities Elasticity of scale and most productive scale size Marginal rates of technical substitution Relative marginal rates of technical substitution Elasticities of substitution Direct elasticities of substitution Allen elasticities of substitution Morishima elasticities of substitution Profit maximization Cost minimization Derived input demand functions and output supply functions Derived from profit maximization Derived from cost minimization Suitability of the production function for econometric applications Productivity measures Average products Total factor productivity Linear production function Specification Estimation Properties Predicted output quantities Marginal products Output elasticities Elasticity of scale Marginal rates of technical substitution Relative marginal rates of technical substitution First-order conditions for profit maximization First-order conditions for cost minimization Derived input demand functions and output supply functions Cobb-Douglas production function Specification Estimation Properties Predicted output quantities Output elasticities Marginal products Elasticity of scale Marginal rates of technical substitution Relative marginal rates of technical substitution First and second partial derivatives Elasticities of substitution Direct elasticities of substitution Allen elasticities of substitution Morishima elasticities of substitution Quasiconcavity First-order conditions for profit maximization First-order conditions for cost minimization Derived input demand functions and output supply functions Derived input demand elasticities Quadratic production function Specification Estimation Properties Predicted output quantities Marginal products Output elasticities Elasticity of scale Marginal rates of technical substitution Relative marginal rates of technical substitution Quasiconcavity Elasticities of substitution Direct elasticities of substitution Allen elasticities of substitution Comparison of direct and Allen elasticities of substitution First-order conditions for profit maximization First-order conditions for cost minimization Translog production function Specification Estimation Statistical significance of individual inputs Properties Predicted output quantities Output elasticities Marginal products Elasticity of scale Marginal rates of technical substitution Relative marginal rates of technical substitution Second partial derivatives Quasiconcavity Elasticities of substitution Direct elasticities of substitution Allen elasticities of substitution Comparison of direct and Allen elasticities of substitution Mean-scaled quantities First-order conditions for profit maximization First-order conditions for cost minimization Evaluation of different functional forms Goodness of fit Test for functional form misspecification Theoretical consistency Plausible estimates Summary Non-parametric production function Dual Approach: Cost Functions Theory Cost function Properties of the cost function Cost flexibility and elasticity of size Homotheticity of cost functions Short-run cost functions Cost functions with multiple outputs Suitability of the cost function for econometric applications Cobb-Douglas cost function Specification Estimation Properties Estimation with linear homogeneity in input prices imposed Checking concavity in input prices Homotheticity Optimal input quantities Optimal cost shares Derived input demand functions Derived input demand elasticities Cost flexibility and elasticity of size Marginal costs, average costs, and total costs Cobb-Douglas short-run cost function Specification Estimation Properties Estimation with linear homogeneity in input prices imposed Cobb-Douglas cost function with multiple outputs Specification Properties Cost flexibility and elasticity of size Translog cost function Specification Estimation Linear homogeneity in input prices Estimation with linear homogeneity in input prices imposed Cost flexibility and elasticity of size Homotheticity Marginal costs and average costs Derived input demand functions Derived input demand elasticities Theoretical consistency Translog cost function with multiple outputs Specification Properties Dual Approach: Profit Function Theory Profit functions Short-run profit functions Graphical illustration of profit and gross margin Cobb-Douglas profit function Specification Estimation Properties Estimation with linear homogeneity in all prices imposed Checking convexity in all prices Predicted profit Optimal profit shares Derived output supply and input demand functions Derived output supply and input demand elasticities Cobb-Douglas short-run profit function Specification Estimation Properties Estimation with linear homogeneity in all prices imposed Returns to scale Shadow prices of quasi-fixed inputs Efficiency Measures Technical efficiency Output-oriented technical efficiency with one output Input-oriented technical efficiency with one input Output-oriented technical efficiency with two or more outputs Input-oriented technical efficiency with two or more inputs Allocative efficiency, revenue efficiency, cost efficiency Output-oriented allocative efficiency and revenue efficiency Input-oriented allocative efficiency and cost efficiency Profit efficiency Scale efficiency Stochastic Frontier Analysis Stochastic production frontiers Specification Marginal products and output elasticities in SFA models Skewness of residuals from OLS estimations Cobb-Douglas stochastic production frontier Estimation Variance parameters Statistical tests for inefficiencies Obtaining technical efficiency estimates Truncated normal distribution of the inefficiency term Translog production frontier Estimation Statistical test for inefficiencies Testing against the Cobb-Douglas functional form Obtaining technical efficiency estimates Truncated normal distribution of the inefficiency term Translog production frontier with mean-scaled variables Stochastic cost frontiers Specification Skewness of residuals from OLS estimations Estimation of a Cobb-Douglas stochastic cost frontier Short-run cost frontiers Profit frontiers Analyzing the effects of z variables Production functions with z variables Production frontiers with z variables Efficiency effects production frontiers Decomposition of cost efficiency Data Envelopment Analysis (DEA) Preparations DEA with input-oriented efficiencies DEA with output-oriented efficiencies DEA withsuper efficiencies''
DEA with graph hyperbolic efficiencies
Distance Functions
Theory
Output distance functions
Properties
Distance elasticities
Elasticity of scale
Optimising behaviour and distance elasticities
Obtaining unobserved output prices
Input distance functions
Properties
Distance elasticities
Elasticity of scale
Cobb-Douglas output distance function
Specification
Estimation
Distance elasticities
Elasticity of scale
Properties
Non-increasing in input quantities
Non-decreasing in output quantities
Quasiconvex in input quantities
Convex in output quantities
Efficiency estimates
Translog output distance function
Specification
Estimation
Distance elasticities
Elasticity of scale
Properties
Non-increasing in input quantities
Non-decreasing in output quantities
Quasiconvex in input quantities
Convex in output quantities
Efficiency estimates
Cobb-Douglas input distance function
Specification
Estimation
Distance elasticities
Elasticity of scale
Properties
Non-decreasing in input quantities
Non-increasing in output quantities
Concave in input quantities
Quasiconcave in output quantities
Efficiency estimates
Translog input distance function
Specification
Estimation
Distance elasticities
Elasticity of scale
Efficiency estimates
Imposing monotonicity
Panel Data and Technological Change
Average production functions with technological change
Cobb-Douglas production function with technological change
Pooled estimation of the Cobb-Douglas production function with technological change
Panel data estimations of the Cobb-Douglas production function with technological change
Translog production function with constant and neutral technological change
Pooled estimation of the Translog production function with constant and neutral technological change
Panel-data estimations of the Translog production function with constant and neutral technological change
Translog production function with non-constant and non-neutral technological change
Pooled estimation of a translog production function with non-constant and non-neutral technological change
Panel-data estimations of a Translog production function with non-constant and non-neutral technological change
Frontier production functions with technological change
Cobb-Douglas production frontier with technological change
Time-invariant individual efficiencies
Time-variant individual efficiencies
Observation-specific efficiencies
Fixed effects in the production frontier
Translog production frontier with constant and neutral technological change
Observation-specific efficiencies
Translog production frontier with non-constant and non-neutral technological change
Observation-specific efficiencies
Decomposition of productivity growth
Analyzing productivity growths with Data Envelopment Analysis (DEA)
Cost functions with technical change
Translog cost function with constant and neutral technical change
Translog cost function with non-constant and non-neutral technical change