Estimation of Measures Directed at Management of Factors of Production Inefficiency

Sergey Aivazian and Mikhail Afanasiev ()
Additional contact information
Mikhail Afanasiev: CEMI RAS, Moscow, Russia

Applied Econometrics, 2007, vol. 8, issue 4, 27-41

Abstract: In development of the stochastic frontier methodology we introduce a concept of achievable production potential generalizing that of the frontier production potential. A model of frontier production potential was built taking in account possibilities of management of factors of inefficiency and the related costs. An estimate of the conditional technical efficiency of production relative to the production potential was obtained. A formal description of measures, directed at management of factors of production inefficiency, and methods of estimation of their technical and economic efficiency are offered. Finally, we present the results of experimental calculations are given

Keywords: production potential; stochastic frontier; production function; technical efficiency; achievable production potential (search for similar items in EconPapers)
JEL-codes: C01 C61 C67 D24 (search for similar items in EconPapers)
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://pe.cemi.rssi.ru/pe_2007_04_27-41.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:apltrx:0021

Access Statistics for this article

Applied Econometrics is currently edited by Anatoly Peresetsky

More articles in Applied Econometrics from Russian Presidential Academy of National Economy and Public Administration (RANEPA)
Bibliographic data for series maintained by Anatoly Peresetsky ().