Journal Of The Econometric Society

An International Society for the Advancement of Economic
Theory in its Relation to Statistics and Mathematics

Edited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262

Econometrica: Mar, 1978, Volume 46, Issue 2

Joint Production Technology: The Case of Petrochemicals<379:JPTTCO>2.0.CO;2-T
p. 379-396

James M. Griffin

This paper explores a new approach to the estimation of a joint production technology. Pseudo data, which are obtained by solving a petrochemical process model for alternative relative prices, are used to estimate a price possibility frontier with 3 inputs and 6 outputs. Unlike traditional data sources, pseudo data are not constrained by historical price variation, technologies, and environmental controls. As an econometric exercise, the approximation of the process model's detailed piecewise linear production surface by a single equation "generalized" functional form, the translog, raises a host of interesting empirical and methodological questions.

Log In To View Full Content

Journal News