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The Determination of the Production Function?'s Stochastic Frontier at the Industry Level

Maria Stancu

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Abstract

For this analysis, the first step consists in estimating the stochastic frontier of the productionfunction.This study is designed to analyze the metallurgic industry, with the determination of the productionfunction's stochastic frontier at the industry level.Analyzing the results of the implementation of the above models we observe that some companies havea high efficiency on the whole range, and some companies have a low efficiency in this period.

About this research paper

What this paper is about

For this analysis, the first step consists in estimating the stochastic frontier of the productionfunction.This study is designed to analyze the metallurgic industry, with the determination of the productionfunction's stochastic frontier at the industry level.Analyzing the results of the implementation of the above models we observe that some companies havea high efficiency on the whole range, and some companies have a low efficiency in this period.

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Available abstract

For this analysis, the first step consists in estimating the stochastic frontier of the productionfunction.This study is designed to analyze the metallurgic industry, with the determination of the productionfunction's stochastic frontier at the industry level.Analyzing the results of the implementation of the above models we observe that some companies havea high efficiency on the whole range, and some companies have a low efficiency in this period.

Key concepts: Frontier, Production (economics), Production–possibility frontier, Function (biology), Range (aeronautics), Econometrics, Stochastic frontier analysis, Stochastic modelling

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