Econometric Production Analysis
This module covers econometric approaches to production analysis, including production functions, cost functions, stochastic frontier analysis and multiple-output technologies. Students study microeconomic production theory alongside statistical and empirical methods, applying Cobb-Douglas, Translog and Constant Elasticity of Substitution specifications to production, cost and distance functions, and to stochastic frontier models.
Delivery
Two-hour lectures per day over five days, plus a one-hour tutorial each day, with optional clinics on the final day. Sessions are live online and recorded.
Study Hours
Approximately 100 hours of study, of which 15 are contact hours and 85 are private study.
Software Used
R
Credits
10 CATS credits
Programme Faculty
Programme Faculty
Programme Faculty
Key Outcomes
- —Know the basics of microeconomic production theory that build the theoretical foundation of econometric production analysis
- —Describe the taught approaches to econometric production analysis and assess their suitability in various empirical settings
- —Use econometric software to empirically analyse production technologies and producer behaviour
- —Calculate various indicators of production technologies and producer behaviour and interpret their meaning regarding the "real-world" situation
Desired Skills
- —Apply various approaches to econometric production analysis to investigate various real-world questions
- —Critically evaluate the appropriateness of a specific econometric production analysis for analysing a specific real-world question
- —Communicate and present the results of econometric production analysis in oral and written form with clarity and succinctness
Lecture Programme
- WK 01
Lecture 1: Introduction & Econometric Analysis with Production Functions (part 1)
- ·Microeconomic production theory (primal approach)
- ·Statistical methods
- ·Empirical analyses
- ·Cobb-Douglas production function
- WK 02
Lecture 2: Econometric Analysis with Production Functions (part 2)
- ·Translog production function
- ·Constant Elasticity of Substitution (CES) production function
- ·General topics regarding production functions
- WK 03
Lecture 3: Econometric Analysis with Cost Functions
- ·Microeconomic theory: cost functions
- ·Cobb-Douglas and Translog cost functions
- ·General topics regarding cost functions
- WK 04
Lecture 4: Stochastic Frontier Analysis
- ·Microeconomic theory
- ·Stochastic frontier analysis
- ·Cobb-Douglas and Translog stochastic production frontier
- ·Cobb-Douglas stochastic cost frontier
- WK 05
Lecture 5: Econometric Analysis of Multiple-Output Technologies
- ·Microeconomic theory
- ·Cobb-Douglas and Translog cost functions for multiple outputs
- ·Other topics regarding cost functions for multiple outputs
- ·Cobb-Douglas and Translog output distance function
- ·Cobb-Douglas and Translog input distance function
- ·Cobb-Douglas and Translog stochastic ray production frontier
Assessment
Online coursework submission with the support of your module lecturer and tutor. All sessions are conducted live online at a scheduled time and recorded for review.