On functional form representation of multi-output production technologies uri icon

abstract

  • 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.

publication date

  • 2010
  • 2010
  • 2010
  • 2010