Deterministic vs. stochastic methods for frontier estimation : update and illustration

• Autorzy: Weber William , Grosskopf Shawna , Hayes Kathy , Wetzel Heike

Identyfikatory

DOI

10.37190/ord250205

• Języki publikacji: EN

Abstrakty

EN

We estimate and compare a deterministic production frontier to a production frontier estimated using stochastic methods. This comparison is illustrated by estimating the Lerner index of monopoly power for a public sector producer. The Lerner index estimates the percentage markup of price over marginal cost. For the deterministic method, we use bootstrapping methods to construct confidence intervals for the Lerner index and its price and marginal cost components. Marginal cost estimates are derived from a translog cost function. Since market prices are usually not observed for public sector producers or are distorted because of subsidies, we use duality theory and derive prices from observed costs and an estimated translog input distance function. Data from German public theaters’ production of performances to attract spectators using artistic staff, administrative staff, and operating expenditures are used as an example. We find no evidence of monopoly power.

Słowa kluczowe

EN

Lerner index; public sector managerial behavior; Aigner–Chu deterministic method; bootstrapping

• Wydawca: Oficyna Wydawnicza Politechniki Wrocławskiej
• Czasopismo: Operations Research and Decisions
• Rocznik: 2025
• Tom: Vol. 35, No. 2
• Strony: 121--141
• Opis fizyczny: Bibliogr. 39 poz., tab.

Twórcy

autor

Weber William

• Department of Accounting, Economics and Finance, Southeast Missouri State University, USA

autor

Grosskopf Shawna

• Department of Economics, Oregon State University, USA

autor

Hayes Kathy

• Department of Economics, Southern Methodist University, USA

autor

Wetzel Heike

• Institute of Economics, University of Kassel, Germany

Bibliografia

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Uwagi

Opracowanie rekordu ze środków MNiSW, umowa nr POPUL/SP/0154/2024/02 w ramach programu "Społeczna odpowiedzialność nauki II" - moduł: Popularyzacja nauki (2025).