Abstract
This note describes how a convex N-input-M -output production possibility frontier can be locally approximated by means of a flexible Nonseparable Nested Constant-Elasticity-of-Substitution/Constant-Elasticity-of-Transformation (NNCES-CET) restricted profit function. This technique yields a summary representation of technology sets that is globally regular and thus suitable for use in applications where regularity is crucial.
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Perroni, C. A Flexible, Globally Regular Representation of Convex Production Possibilities Frontiers. Journal of Productivity Analysis 12, 153–159 (1999). https://doi.org/10.1023/A:1007811330681
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DOI: https://doi.org/10.1023/A:1007811330681