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SYLLABUS
The economic model
- Input or output oriented
min input allocation
max output under given input
- Economic assumptions
- No free lunch
- Free disposability
- Bounded
- Closeness
- Convexity
- Convexity of requirement net → if Ψ convex, inputs and outputs are also convex
- Farell - Debreau measure
- Input: θ (x₀, y₀) = inf → θ (x₀, y₀) ≤ 1
- Output: λ (x₀, y₀) = sup → λ (x₀, y₀) ≥ 1
- Shephard distance function
- Normalized euclidian distance between (x, y) and Ψ
OBS: bootstrap can help to improve inference
The bootstrap
- data based simulation method for statistical inference
- simulating the DGP
- sampling the distributions of interest
- basic idea
- random sample X
- we want to investigate a Θ of Θ
- to evaluate the bias
- we need the sampling distribution of Θ(X)
- L(Θ(X)) is unknown
- aim to provide an approximation
- if it is consistent
- Θ*(x,y) will mimic Θ(x,y) unknown
From non parametric to parametric
- main advantage
- obtaining robust estimators of coeff. of parametric mod
- easy interpretation
- obtaining robust estimators of coeff. of parametric mod