arXiv 20 Nov 2023 · Statistics — Methodology · publishedJournal of Productivity Analysis (2024) · 3 citations (OpenAlex)
arXiv:2311.11637 · PDF · DOI · OpenAlex · Extracted main text
Modeling of joint production has proved a vexing problem. This paper develops a radial convex nonparametric least squares (CNLS) approach to estimate the input distance function with multiple outputs. We document the correct input distance function transformation and prove that the necessary orthogonality conditions can be satisfied in radial CNLS. A Monte Carlo study is performed to compare the finite sample performance of radial CNLS and other deterministic and stochastic frontier approaches in terms of the input distance function estimation. We apply our novel approach to the Finnish electricity distribution network regulation and empirically confirm that the input isoquants become more curved. In addition, we introduce the weight restriction to radial CNLS to mitigate the potential overfitting and increase the out-of-sample performance in energy regulation.
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The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | Schaefer \ Clermont (2018) Stochastic non-smooth envelopment of data for multi-dimensional output, Journal of Productivity Analysis 50: 139–154 | 1.000 | 9 | 3 | 100% |
| 2 | Kuosmanen \ Johnson (2017) Modeling joint production of multiple outputs in StoNED: Directional distance function approach, European Journal of Operational… | 1.000 | 8 | 4 | 100% |
| 3 | Kuosmanen \ Johnson (2020) Conditional yardstick competition in energy regulation, The Energy Journal 41: 67–92 | 0.874 | 10 | 2 | 100% |
| 4 | Kumbhakar (2013) Specification and estimation of multiple output technologies: A primal approach, European Journal of Operational Research 231: 4… | 0.811 | 4 | 2 | 100% |
| 5 | Manski (2009) Identification for prediction and decision, Harvard University Press, Cambridge, MA | 0.811 | 4 | 2 | 100% |
| 6 | Shephard (1970) Theory of cost and production functions, Princeton University Press, Princeton | 0.811 | 4 | 2 | 100% |
| 7 | Tamer (2010) Partial identification in econometrics, Annual Review of Economics 2: 167–195 | 0.811 | 4 | 2 | 100% |
| 8 | Hall \ Simar (2002) Estimating a change point, boundary, or frontier in the presence of observation error, Journal of the American Statistical Assoc… | 0.737 | 3 | 2 | 100% |
| Fare2010 | unmatched citation key Fare2010 | 0.693 | 5 | 1 | 100% |
| 10 | Kuosmanen, Kuosmanen \ Dai (2022) Kohtuullinen muuttuva kustannus sähkön jakeluverkkoyhtiöiden valvontamallissa: Ehdotus tehostamiskannustimen kehittämiseksi 6 | 0.693 | 5 | 1 | 100% |
Showing the top 10 of 38 scored citations. 1 of these could not be matched to a bibliography entry, so only the citation key is shown.