Marginal Values and Returns to Scale for Nonparametric Production Frontiers

Marginal Values and Returns to Scale for Nonparametric Production Frontiers

Estimating Variable Returns to Scale Production Frontiers with Alternative Stochastic Assumptions

A stochastic production frontier model is formulated within the generalized production function framework popularized by Zellner and Revankar (1969) and Zellner and Ryu (1998). This framework is convenient for parsimonious modeling of a production function with variable returns to scale specified as a function of output. Two alternatives for introducing the stochastic inefficiency term and the ...

An input-oriented radial measure for returns to scale aggregation.

In production theory, it is necessary to be capable of predicting the production func- tion’s long-run behaviors. Hereof, returns to scale is a helpful concept. Returns to scale describes the reaction of a production function to the proportionally scaling all its input variables. In this regard, Data envelopment analysis (DEA) provides a com- prehensive framework for returns to scale evaluation...

Estimating Marginal Returns to Education

Estimating Marginal Returns to Education.

This paper estimates marginal returns to college for individuals induced to enroll in college by different marginal policy changes. The recent instrumental variables literature seeks to estimate this parameter, but in general it does so only under strong assumptions that are tested and found wanting. We show how to utilize economic theory and local instrumental variables estimators to estimate ...