Combining aggregate production function and technical efficiency: Indonesian case study

Besides frontiers and Data Enveloped Analysis approaches, a combination between the aggregate production function technical efficiency can be performed using Corrected Ordinary Least Square approach. Unfortunately, there are no studies in Indonesia that use this This paper mainly how approach combines efficiency. The methods modeling, correcting, measuring. data Gross Regional Domestic Product at constant price, number of workers, investment expenditure, education, health Indonesian provinces from 2015 to 2020. There three results. First, fixed effect panel is best model. In model, price influenced by human capital. Human capital consists education level. Second, deterministic frontier shifts best-fixed model so becomes –15.36. Third, when factors influence inefficiency on average 0.9936. All results indicate capital, combination, practical values.