The general explicit fonn of the production function
can be written as below:
These SFMs consist of a production function
and an inefficiency equation.
The enterprise production function
with electricity can reflect both the technology level and management level of the production.
Mathew (1982) "On the Estimation of Technical Inefficiency in the Stochastic Frontier Production Function
Model", Journal of Economics, 19:233:38.
Section III presents the Cobb--Douglas production function
and the Solow growth model.
Hicks  suggested a generalization of Hicks' original two variable elasticity concept as follows: For a production function
In this paper, we examine the choice problem between two production functions
If the one-sided error term in the production function
is not present then our model is an ordinary production function
, which can be estimated by Ordinary Least Squares (OLS) regression technique.
We base our Bayesian analysis on the normalized production function
specification of Klump and de La Grandville (2000), thoroughly studied by Klump, McAdam, and Willman (2007a), which allows for nonneutral technological change.
Denoting the capital per unit of labor by k = K / L for any L [not equal to] 0 we define the production function
in intensive form as f(k).
A production function
allows an analysis of inputs and results, it searches to describe the more optimal level of production and it is interested, in addition, by the analysis of the best options to obtain a maximum possible product level, using determined inputs; thus the production function
is a very useful instrument since it allows to describe the levels of greater efficiency and to observe impacts of possible changes in the inputs or technological changes.
That means, implementing this production function
will lead to adaptive offers where the input factors are in a functional relationship within one technological process variant.