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A Flexible, Globally Regular Representation of Convex Production Possibilities Frontiers

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  • Carlo Perroni

Abstract

This note describes how a convex N-input-M -output production possibility frontier can be locally approximated by means of a flexible Nonseparable Nested Constant-Elasticity-of-Substitution/Constant-Elasticity-of-Transformation (NNCES-CET) restricted profit function. This technique yields a summary representation of technology sets that is globally regular and thus suitable for use in applications where regularity is crucial. Copyright Kluwer Academic Publishers 1999

Suggested Citation

  • Carlo Perroni, 1999. "A Flexible, Globally Regular Representation of Convex Production Possibilities Frontiers," Journal of Productivity Analysis, Springer, vol. 12(2), pages 153-159, September.
    • Handle: RePEc:kap:jproda:v:12:y:1999:i:2:p:153-159
    DOI: 10.1023/A:1007811330681
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    References listed on IDEAS

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    1. Perroni, Carlo, 1992. "Homothetic representation of regular non-homothetic preferences," Economics Letters, Elsevier, vol. 40(1), pages 19-22, September.
    2. Kjell Salvanes & Sigve Tjøtta, 1998. "A Note on the Importance of Testing for Regularities for Estimated Flexible Functional Forms," Journal of Productivity Analysis, Springer, vol. 9(2), pages 133-143, March.
    3. Perroni, Carlo & Rutherford, Thomas F, 1998. "A Comparison of the Performance of Flexible Functional Forms for Use in Applied General Equilibrium Modelling," Computational Economics, Springer;Society for Computational Economics, vol. 11(3), pages 245-263, June.
    4. Kohli, Ulrich, 1993. "A Symmetric Normalized Quadratic GNP Function and the U.S. Demand for Imports and Supply of Exports," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 34(1), pages 243-255, February.
    5. repec:fth:wilfau:91158 is not listed on IDEAS
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