IDEAS home Printed from https://ideas.repec.org/a/ris/apltrx/0177.html
   My bibliography  Save this article

Some specification aspects for three-factor models of a company's production potential taking into account intellectual capital

Author

Listed:
  • Aivazian, Sergei

    (CEMI RAS, Moscow, Russia)

  • Afanasiev, Mikhail

    (CEMI RAS, Moscow, Russia)

  • Rudenko, Victoria

    (Moscow Engineering Physics Institute (National Research Nuclear University), Russia)

Abstract

As a contribution to further development of the stochastic frontier methodology the specification method for a 3-factor stochastic model of the production potential of a company is given. Along with labor input and physical capital input we consider intellectual capital as a basic production factor. For the description of a random variable that defines production efficiency the truncated at zero normal distribution is used. The presented formalized scheme that is based on hypothesis testing criteria and information about adequate efficiency factors allows one to choose a model reasonably. Practical approval of the given method is provided on the statistical data for the American companies operating in «Biotechnology and Drugs» sector and for the Russian companies operating in «Pharmaceutical production» and «Software development» areas. It is shown that unreasonable model specification may lead to significant distortions in the production efficiency estimates. For different estimations of intellectual capital hypothesis testing procedure regarding adequacy of the estimations is provided.

Suggested Citation

  • Aivazian, Sergei & Afanasiev, Mikhail & Rudenko, Victoria, 2012. "Some specification aspects for three-factor models of a company's production potential taking into account intellectual capital," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 27(3), pages 36-69.
    • Handle: RePEc:ris:apltrx:0177
    as

    Download full text from publisher

    File URL: http://pe.cemi.rssi.ru/pe_2012_3_36-69.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Roberto G. Gutierrez & Shana Carter & David M. Drukker, 2001. "On boundary-value likelihood-ratio tests," Stata Technical Bulletin, StataCorp LP, vol. 10(60).
    2. Michele Boldrin & David Levine, 2002. "The Case Against Intellectual Property," American Economic Review, American Economic Association, vol. 92(2), pages 209-212, May.
    3. Adrian R Pagan & Anthony D Hall, 1983. "Diagnostic tests as residual analysis," Published Paper Series 1983-1, Finance Discipline Group, UTS Business School, University of Technology, Sydney.
    4. Romer,Paul M, 1989. "What determines the rate of growth and technological change?," Policy Research Working Paper Series 279, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Valeriy Makarov & Albert Bakhtizin, 2014. "The Estimation Of The Regions’ Efficiency Of The Russian Federation Including The Intellectual Capital, The Characteristics Of Readiness For Innovation, Level Of Well-Being, And Quality Of Life," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(4), pages 9-30.
    2. Ayvazyan Sergey Arutyunovich & Afanasyev Mikhail Yuryevich, 2015. "Assessment of innovative activity of regions in the Russian federation," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 11(1), pages 7-21.
    3. Макаров Валерий Леонидович & Айвазян Сергей Арутюнович & Афанасьев Михаил Юрьевич & Бахтизин Альберт Рауфович & Нанавян Ашхен Мардиросовна, 2014. "Оценка Эффективности Регионов Рф С Учетом Интеллектуального Капитала, Характеристик Готовности К Инновациям, Уровня Благосостояния И Качества Жизни Населения," Экономика региона, CyberLeninka;Федеральное государственное бюджетное учреждение науки «Институт экономики Уральского отделения Российской академии наук», issue 4, pages 9-30.
    4. Айвазян С.А. & Афанасьев М.Ю. & Кудров А.В., 2016. "Модели Производственного Потенциала И Оценки Технологической Эффективности Регионов Рф С Учетом Структуры Производства," Журнал Экономика и математические методы (ЭММ), Центральный Экономико-Математический Институт (ЦЭМИ), vol. 52(1), pages 28-44, январь.
    5. Tsvetkova, Anna, 2021. "Technical efficiency trends of Russian firms in 2013–2018," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 63, pages 91-116.
    6. Aivazian, Sergei & Afanasiev, Mikhail & Rudenko, Victoria, 2014. "Analysis of dependence between the random components of a stochastic production function for the purpose of technical efficiency estimation," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 34(2), pages 3-18.
    7. 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.
    8. Valery Makarov & Sergey Ayvazyan & Mikhail Afanasyev & Albert Bakhtizin & Ashkhen Nanavyan, 2016. "Modeling the Development of Regional Economy and an Innovation Space Efficiency," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 10(3), pages 76-91.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lutz Arnold & Christian Bauer, 2009. "On the growth and welfare effects of monopolistic distortions," Journal of Economics, Springer, vol. 97(1), pages 19-40, May.
    2. Guido Cozzi, 2009. "Intellectual Property, Innovation, And Growth: Introduction To The Special Issue," Scottish Journal of Political Economy, Scottish Economic Society, vol. 56(4), pages 383-389, September.
    3. Gregory, Allan W. & McCurdy, Thomas H., 1986. "The unbiasedness hypothesis in the forward foreign exchange market: A specification analysis with application to France, Italy, Japan, the United Kingdom and West Germany," European Economic Review, Elsevier, vol. 30(2), pages 365-381, April.
    4. Balassa, Bela, 1990. "Indicative planning in developing countries," Policy Research Working Paper Series 439, The World Bank.
    5. Shi, Guanming & Stiegert, Kyle & Chavas, Jean Paul, 2010. "An Analysis of Pricing in Horizontal and Vertical Markets: The Case of the Cottonseed Market," Working Papers 201439, University of Wisconsin-Madison, Department of Agricultural and Applied Economics, Food System Research Group.
    6. repec:cbh:journl:v:14:y:2015:i:3:p:88-105 is not listed on IDEAS
    7. Marijke Verpoorten & Lode Berlage, 2004. "Genocide and land scarcity: Can Rwandan rural households manage?," CSAE Working Paper Series 2004-15, Centre for the Study of African Economies, University of Oxford.
    8. James, Jennifer S. & Pardey, Philip G. & Alston, Julian M., 2008. "Agricultural R&D Policy: A Tragedy of the International Commons," Staff Papers 43094, University of Minnesota, Department of Applied Economics.
    9. R. Nahuis & H. van der Wiel, 2005. "How Should Europe’s ICT Ambitions look like? An Interpretative Review of the Facts," Working Papers 05-22, Utrecht School of Economics.
    10. Sadorsky, P. A., 1989. "Measuring Resource Scarcity in Non-renewable Resources with Inequality Constrained Estimation," Queen's Institute for Economic Research Discussion Papers 275216, Queen's University - Department of Economics.
    11. Ramaprasad Bhar & Malliaris & Mary Malliaris, 2015. "The impact of large-scale asset purchases on the S&P 500 index, long-term interest rates and unemployment," Applied Economics, Taylor & Francis Journals, vol. 47(55), pages 6010-6018, November.
    12. Martina Rebien & Michael Stops & Anna Zaharieva, 2020. "Formal Search And Referrals From A Firm'S Perspective," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 61(4), pages 1679-1748, November.
    13. Niloy Bose & M. Emranul Haque & Denise R. Osborn, 2007. "Public Expenditure And Economic Growth: A Disaggregated Analysis For Developing Countries," Manchester School, University of Manchester, vol. 75(5), pages 533-556, September.
    14. Kira Lancker & Julia Bronnmann, 2022. "Substitution Preferences for Fish in Senegal," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(4), pages 1015-1045, August.
    15. Pedro Bento, 2014. "Competition as a Discovery Procedure: Schumpeter Meets Hayek in a Model of Innovation," American Economic Journal: Macroeconomics, American Economic Association, vol. 6(3), pages 124-152, July.
    16. Adam P. Balcerzak & Elżbieta Rogalska, 2011. "The Significance of Intellectual Protection Rights System in the Knowledge Based Economy," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 27.
    17. Benoît, Jean-Pierre & Galbiati, Roberto & Henry, Emeric, 2017. "Investing to cooperate: Theory and experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 144(C), pages 1-17.
    18. Guanming Shi & Kyle W. Stiegert & Jean P. Chavas, 2011. "An analysis of bundle pricing in horizontal and vertical markets: The case of the U.S. cottonseed market," Agricultural Economics, International Association of Agricultural Economists, vol. 42, pages 77-88, November.
    19. Kendix, Michael & Walls, W.D., 2010. "Oil industry consolidation and refined product prices: Evidence from US wholesale gasoline terminals," Energy Policy, Elsevier, vol. 38(7), pages 3498-3507, July.
    20. Antonio Avalos & Andreas Savvides, 2006. "The Manufacturing Wage Inequality in Latin America and East Asia: Openness, Technology Transfer, and Labor Supply," Review of Development Economics, Wiley Blackwell, vol. 10(4), pages 553-576, November.
    21. Jens Hougaard & Mich Tvede, 2010. "Selling digital music: business models for public goods," Netnomics, Springer, vol. 11(1), pages 85-102, April.

    More about this item

    Keywords

    econometric model; production potential; model specification; production factors; efficiency factors; intellectual capital; production efficiency.;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:apltrx:0177. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Anatoly Peresetsky (email available below). General contact details of provider: http://appliedeconometrics.cemi.rssi.ru/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.