Consistent specifications of the allocative inefficiency function in cost plus input share equations systems may be difficult, if not impossible, to find because most plausible ones violate certain reasonable a priori conditions. Moreover, the models to which they lead give rise to highly non-linear likelihood functions that are very hard to estimate.
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Paper provided by Athens University of Economics and Business, Department of International and European Economic Studies in its series Athens University of Economics and Business with number
124.
Length: 19 pages Date of creation: 2001 Date of revision: Handle: RePEc:fth:athebu:124
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Find related papers by JEL classification: C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Capital and Ownership Structure
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