AEB 7184 — Production Economics
Purpose: The purpose of this course is to introduce students to the standard theoretical and empirical models used in the investigation of firm level production decisions.
Textbooks
- Moss, Charles B. (2022) Production Economics: An Empirical Approach World Scientific: Hackensack, NJ
Outline
- Basic Notions of Production Functions
- Lecture I: Basic Notions of Production Functions Overheads
- The Single Input Production Function [Beattie and Taylor 2.1]
- The Multiple Input Production Function [Beattie and Taylor 2.2]
- Lecture II: Definition and Properties of the Production Function Overheads
- The Production Function Defined [Chambers 1.1]
- Properties of the Production Function [Chambers 1.2]
- Law of Variable Proportions [Chambers 1.4]
- Measure of Simultaneous Input Variation: Elasticity of Scale [Chambers 1.5].
- Lecture III: Substituting One Input for Another in Production Overheads
- Elasticity of Scale and Law of Variable Proportion [Chambers 1.6]
- Measures of Input Substitution [Chambers 1.7]
- Structure of Production Function [Chambers 1.8]
- Some Simple Production Mechanics
- Lecture IV: Some Simple Production Mechanics Overheads
- Profit Maximization
- Expansion Path
- Derived Demand
- Supply
- Cost Minimization
- Derived Demand (output conditional)
- Cost Function
- Marginal Cost
- Estimation of the Primal Production Function
- Lecture V: Estimation of the Primal Production Function Overheads
- Lecture VI: Simultaneity and Other “Simple” Problems Overheads
- Simultaneity and sample selection
- Zeros and other data problems
- Nonparametric Surfaces
- Existence of Stage III
- Lecture VII: Stochastic Nature of Production Functions Overheads
- Lecture VIII: Estimation of Production Functions: Fixed Effects in Panel Data Overheads
- Lecture IX: Estimation of Production Functions: Random Effects in Panel Data Overheads
- Lecture X: Stochastic Error Functions I: Another Composed Error Overheads
- Lecture XI: Stochastic Error Functions II: Estimation of Stochastic Frontiers Overheads
- Lecture XII: Empirical Applications of the Primal Lost Lecture
- Test on Primal
- Cost Functions
- Lecture XIII: Definition and Properties of the Cost Function Overheads
- Definition of the Cost Function [Chambers 2.1]
- Properties of the Cost Function [Chambers 2.2]
- Lecture XIV: Comparative Statics and Duality of the Cost Function Overheads
- Comparative Statics of the Cost Function [Chambers 2.3]
- Duality between Cost and Production Functions [Chambers 2.4]
- Lecture XV: An Application of Duality Overheads
- Lecture XVI: Shephard’s Duality Proof: Part I Overheads
- Lecture XVII: Shephard’s Duality Proof: Part II Overheads
- Estimation of Cost Functions
- Lecture XVIII: Cost Functions and the Estimation of Flexible Functional Forms Overheads
- Flexible Function Forms [Chambers 5.1 and 5.2]
- Fourier Function Forms
- Estimation of Seemingly Unrelated Regression Models
- Lecture XIX: Limitations, Aggregation, and Constraints Overheads
- Limitations to Flexible Functional Forms [Chambers 5.4]
- Aggregation Issues
- Imposing Restrictions
- Homogeneity
- Symmetry
- Concavity
- Lecture XX: Elasticity of Substitution and Demand Overheads
- Lecture XXI: Subadditivity of Cost Functions Overheads
Profit Functions
- Lecture XXII: Introduction to Profit Functions Overheads
- Definition of the Profit Function [Chambers 4.2]
- Comparative Statics of the Profit Function [Chambers 4.3]
- The Profit Function and Duality [Chambers 4.4]
- Lecture XXIII: Revenue Functions Overheads
- Lecture XXIV: Quasi-Fixed Variables and the Revenue Function Overheads
Test on Duality
Technical Change and Efficiency: Theory and Measurement
- Lecture XXV: Measuring Changes in Productivity Overheads
- Measurement of Technical Change from Indirect Objective Functions [Chambers 6.2]
- Divisia Indices and Technical Change [Chambers 6.3]
- Total Factor Productivity [Chambers 6.4]
Lecture XXVI : Measuring Technical Efficiency Overheads
- Technical Efficiency
- Data Envelope Analysis
- Directed Distance Functions
Lecture XXVII: Factor Bias, Technical Change, and Valuing Research Overheads
- Mathematical Model of Technical Change
- Valuing State Level Funding for Research: Results for Florida
Differential Models of Supply
- Lecture XXVIII: Differential Models of Production: The Single Product Firm Overheads
- Lecture XXIX: Differential Models of Production: Change in the Marginal Cost and the Multi-Product Firm Overheads
Final Examination — August 8
Apache Web Server Copyright © 1997 — 2015 
Webpage Resources Provided by Charles B. Moss – charlesbmoss@gmail.com
www.charlesbmoss.com:8080
