Nonparametric Estimation of Concave Production Technologies by Entropic Methods

Journal of Applied Econometrics, September 22, 2005

27 Pages Posted: 20 Jun 2006

See all articles by Gad Allon

Gad Allon

University of Pennsylvania - The Wharton School

Steve Hackman

Georgia Institute of Technology

Michael Beenstock

Hebrew University of Jerusalem - Department of Economics

Uri Passy

Technion-Israel Institute of Technology

Alexander Shapiro

Georgia Institute of Technology - The H. Milton Stewart School of Industrial & Systems Engineering (ISyE)

Abstract

An econometric methodology is developed for nonparametric estimation of concave production technologies. The methodology, based on the principle of maximum likelihood, uses entropic distance and convex programming techniques to estimate production functions. Empirical applications are presented to demonstrate the feasibility of the methodology in small and large data sets.

Keywords: Entropic , Nonparametric, Concave, Production

Suggested Citation

Allon, Gad and Hackman, Steven T. and Beenstock, Michael and Passy, Uri and Shapiro, Alexander, Nonparametric Estimation of Concave Production Technologies by Entropic Methods. Journal of Applied Econometrics, September 22, 2005, Available at SSRN: https://ssrn.com/abstract=907305

Gad Allon (Contact Author)

University of Pennsylvania - The Wharton School ( email )

3641 Locust Walk
Philadelphia, PA 19104-6365
United States

Steven T. Hackman

Georgia Institute of Technology ( email )

765 Ferst Drive
Atlanta, GA 30332-0205
United States

Michael Beenstock

Hebrew University of Jerusalem - Department of Economics ( email )

Mount Scopus
Kfar Etzion 35/4
Jerusalem 91905
Israel
972-2-723-184 (Phone)
972-2-672-5317 (Fax)

Uri Passy

Technion-Israel Institute of Technology ( email )

Technion City
Haifa 32000, Haifa 32000
Israel

Alexander Shapiro

Georgia Institute of Technology - The H. Milton Stewart School of Industrial & Systems Engineering (ISyE) ( email )

765 Ferst Drive
Atlanta, GA 30332-0205
United States

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