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Estimation of Multi-Output Production Functions with Incomplete Data: A Generalized Maximum Entropy Approach

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  • Miller, Douglas
  • Lence, Sergio H.
Abstract
One problem commonly encountered when analysing multiproduct-multifactor firms is the lack of activity-specific input data. The present study contributes to the empirical literature on production functions by presenting an information theoretic approach to estimating production functions in the absence of activity-specific input allocations. The procedure relies solely on production data, so that behavioural hypotheses (e.g., profit maximisation) are not required and estimation can proceed in the absence of price data. In addition, the method can be applied to ill-posed problems. The proposed procedure is demonstrated with simulated production data and exhibits favourable statistical properties. Copyright 1998 by Oxford University Press.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Miller, Douglas & Lence, Sergio H., 1998. "Estimation of Multi-Output Production Functions with Incomplete Data: A Generalized Maximum Entropy Approach," Staff General Research Papers Archive 1219, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:1219
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