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Estimation of the Economic Efficiency of a Shift to the Achievable Production Potential

Author

Listed:
  • Sergei Aivazian

    (CEMI RAS, Moscow, Russia)

  • Mikhail Afanasiev

    (CEMI RAS, Moscow, Russia)

Abstract

Developing a concept of stochastic frontier we estimate the expected increase in the production volume achieved as a result of a shift to the achievable production potential. The expected economic effect of an activity of raising production efficiency is forecast. The distribution of the economic effect allowing analyzing risks related to an activity realization is given

Suggested Citation

  • Sergei Aivazian & Mikhail Afanasiev, 2009. "Estimation of the Economic Efficiency of a Shift to the Achievable Production Potential," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 15(3), pages 43-55.
    • Handle: RePEc:ris:apltrx:0036
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    References listed on IDEAS

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    1. Battese, George E. & Coelli, Tim J., 1988. "Prediction of firm-level technical efficiencies with a generalized frontier production function and panel data," Journal of Econometrics, Elsevier, vol. 38(3), pages 387-399, July.
    2. Sergei Aivazian & Mikhail Afanasiev, 2007. "Estimation of Measures Directed at Management of Factors of Production Inefficiency," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 8(4), pages 27-41.
    3. Mikhail Afanasiev, 2006. "A Model of the Production Potential with Managed Factors of Inefficiency," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 4(4), pages 74-89.
    4. Rafik Baccouche & Mokhtar Kouki, 2003. "Stochastic Production Frontier and Technical Inefficiency: A Sensitivity Analysis," Econometric Reviews, Taylor & Francis Journals, vol. 22(1), pages 79-91, February.
    5. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    6. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-444, June.
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    Citations

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    Cited by:

    1. Anastasia Mogilat & Irina Ipatova, 2016. "Technical efficiency as a factor of Russian industrial companies’ risks of financial distress," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 42, pages 05-29.
    2. Sergey Aivazian & Mikhail Afanasyev, 2012. "The Models For Company'S Human Capital Estimation, Based On The Stochastic Frontier Approach," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 8(1), pages 7-26.
    3. Айвазян С.А. & Афанасьев М.Ю. & Руденко В.А., 2014. "Оценка Эффективности Регионов Рф На Основе Модели Производственного Потенциала С Характеристиками Готовности К Инновациям," Журнал Экономика и математические методы (ЭММ), Центральный Экономико-Математический Институт (ЦЭМИ), vol. 50(4), pages 34-70, октябрь.
    4. Айвазян С.А. & Афанасьев М.Ю., 2012. "Модели Оценки Человеческого Капитала Компании, Основанные На Концепции Стохастической Границы," Журнал Экономика и математические методы (ЭММ), Центральный Экономико-Математический Институт (ЦЭМИ), vol. 48(3), июль.
    5. Sergei Aivazian & Mikhail Afanasiev & Alexander Afanasyev, 2009. "Economic Efficiency Estimation of Banks’ Activities Directed at Loans Products Advertisement," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 16(4), pages 46-59.
    6. Айвазян С.А. & Афанасьев М.Ю., 2013. "К Оценке Стоимости Замещения Человеческого Капитала Сотрудника Компании," Журнал Экономика и математические методы (ЭММ), Центральный Экономико-Математический Институт (ЦЭМИ), vol. 49(4), pages 62-70, октябрь.
    7. Irina Ipatova & Аnatoly Peresetsky, 2013. "Technical efficiency of Russian plastic and rubber production firms," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 32(4), pages 71-92.

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    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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