Summer Course: Introduction to Econometric Production Analysis ...

Thursday morning
• cost functions and their properties
• Shepard’s lemma
• Cobb-Douglas cost function
– specification
– estimation
– marginal costs
– cost flexibility, elasticity of size, and elasticity of scale
– consistency with microeconomic theory
Thursday afternoon
• Cobb-Douglas cost function (continued)
– imposing homogeneity in input prices
– derived input demand functions
– derived input demand elasticities and their properties
– marginal costs, average costs and total costs curve
• short-run cost functions
• Translog cost functions
Friday morning
• stochastic frontier analysis
• error components frontier
• stochastic frontier production function
• measuring technical (in)efficiency
• Cobb-Douglas stochastic frontier production function
• Translog stochastic frontier production function
• efficiency effects stochastic production frontier
• Cobb-Douglas efficiency effects stochastic production frontier
• stochastic cost frontiers
Friday afternoon
• technical change
• decomposition of changes of total factor productivity
• summing up
• farewell
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