Frontier production function estimates for steam electric generation ( technology): a comparative analysis.

The modeling of production activities has been central in applied econometric research, both as an area in which existing estimators might be applied and in providing a stimulus for the development of new methods. These models tried to incorporate the view of the production function as a locus of maximum output from a given input set into the estimation by altering error specifications. Since the current literature has largely been devoted to refining the estimating techniques for such models, we know little of their comparative performance under either controlled conditions or in 'real world' applications. Since they have often been intended as vehicles to illustrate new methods, restrictive functional forms (primarily the Cobb-Douglas) where most of the features are maintained as given have largely been adopted. It is difficult to gauge whether these frontier estimators would offer different estimates from more conventional methods. This paper addresses these issues and reports findings on the measured characteristics of the technology and its technical efficiency using flexible functional forms and one of the most popular technologies for production analysis-steam electric generation.-from Authors