ON THE PRICE AND STRUCTURAL EFFICIENCY IN FARRELL'S MODEL |
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| Authors: | Jati K. Sengupta |
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| Affiliation: | Department of Economics, University of California, Santa Barbara, CA 93106 |
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| Abstract: | The paper develops a mean variance model to characterize the price efficiency at the firm level in Farrell's model and shows how risk aversion may affect this measure. Problems of estimating the structural efficiency at the industry level are also discussed and it is shown that this involves a comparison between efficiency distributions of two or more industries. Two empirical applications for the two efficiency measures are also discussed. |
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