Stochastic frontier estimation of a CES cost function: the case of higher education in Britain

@inproceedings{Izadi2002StochasticFE,
  title={Stochastic frontier estimation of a CES cost function: the case of higher education in Britain},
  author={Hooshang Izadi and Geraint Johnes and Reza Oskrochi and Robert Crouchley},
  year={2002}
}
Abstract Many estimates exist in the literature of multi-product cost functions estimated across a sample of institutions of higher education. Typically these have not employed the appropriate frontier estimation techniques. The cost functions usually estimated — such as the constant elasticity of substitution (CES) function — are highly non-linear, and the standard software packages do not allow stochastic frontier estimation in such cases. We derive and maximise the likelihood function… CONTINUE READING

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