The PMP methodology is extended to deal with many economic units, self-selection arising from heterogeneous economic behavior, and multiple limiting inputs. The novel structure for the analysis of this type of problems acquires the name “symmetric positive equilibrium problem.” This...

Production economics problems are often ill-posed. This means that the number of parameters to be estimated is greater than the number of observations. In this article we show how to recover flexible cost functions from very limited data sets using a maximum entropy approach. We also argue that...