The research focus of the paper is to distinguish allocative and technical inefficiencies on Moscow region corporate farms. DEA specifications with both monetary and technical objective functions are applied. Reduced costs and sensitivity analyses are used to identify fixed inputs constraining...

This paper deals with estimation of a production technology where endogeneous choice of input and output variables is explicitly recognized. In particular, we assume that producers maximize return to the outlay (RO). For simplicity and tractability we start with a Cobb–Douglas transformation...

The paper addresses the decomposition of firms’ profit inefficiency (i.e. the difference between the observed profit and the maximal profit that could have been earned) in a context of output price uncertainty. More precisely, we separate this inefficiency into price expectation error,...