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The Expected Minimum Cost Function: a Non Parametric Approach

Author

Listed:
  • Cazals, C.
  • Florens, J.-P.

Abstract

The purpose of this paper is to define the concept of expected minimum cost function and to present the methodology for a non parametric estimation of it. Generally, in cost enonometric analysis, inference is made on the cost function, namely the conditional expectation of cost given some level of output. Here, we consider the conditional distribution on the cost, given that the output level is greater than a fixed level. Our methodology is applied to a data set concerning cost and outputs of the delivery activity for french post offices.

Suggested Citation

  • Cazals, C. & Florens, J.-P., 1997. "The Expected Minimum Cost Function: a Non Parametric Approach," Papers 97.457, Toulouse - GREMAQ.
  • Handle: RePEc:fth:gremaq:97.457
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    Cited by:

    1. Cazals, Catherine & Florens, Jean-Pierre & Simar, Leopold, 2002. "Nonparametric frontier estimation: a robust approach," Journal of Econometrics, Elsevier, vol. 106(1), pages 1-25, January.

    More about this item

    Keywords

    COSTS ; MATHEMATICAL ANALYSIS ; ECONOMETRICS ; STATISTICAL ANALYSIS;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General

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