Click On This Ad To Earn Money


Reference list regarding economic functional forms and estimation

These concepts will involve the definition of technology, functional form, and other matters especially some important theories in micro-economics. These are the fundamental assumptions when developing the methodology of efficiency measurement. My advice is that read Intermediate Microeconomics_A Modern Approach (8th ed), (Ch. 18, 19, 20, 21) or Microeconomic Analysis (3rd) (Ch. 1~6, 12, 26, 27) and then study very carefully about how to estimate these functional forms especially considering their error sources (these are detailed in the book chapter, A Survey of Functional Forms in the Economic Analysis of Production.) If you want to know how to estimate these in practice, the lecture note, Introduction to Econometric Production Analysis with R, is really worth reading since it combines all R codes and data.

Other suggestions are also listed as follows. Carefully read these references in the following order (words in the parentheses indicate the suggested sections).

Production, cost, profit function
Intermediate Microeconomics_A Modern Approach (8th ed), (Ch. 18, 19, 20, 21)
Microeconomic Analysis (3rd) (Ch. 1~6, 12, 26, 27)
Microeconomic Theory (Ch. 5)
Applied production analysis: a dual approach (All)

Distance function
Multi-Output Production and Duality: Theory and Applications

This article will continuously be updated and I welcome anyone of you to post your experience here.

No comments