Modelling a stochastic profit system using gauge function

This article provides an analytical solution to the ‘Greene problem’; use of McFadden's gauge function successfully separates technical inefficiency from the profit function and its share equations, even though allocative inefficiency is incorporated into the profit system, and establishes an exact relationship between allocative inefficiency in the profit function and its share equations to make the system readily estimable.

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Year of publication:	2012
Authors:	Han, Yongseung
Published in:	Applied Economics Letters. - Taylor & Francis Journals, ISSN 1350-4851. - Vol. 19.2012, 9, p. 823-827
Publisher:	Taylor & Francis Journals

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010548666