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Fitting of full Cobb-Douglas and full VRTS cost frontiers by solving goal programming problem
, B. Mahaboob, C. Subbarami Reddy, B. Madhusudhana Rao
Published in Institute of Physics Publishing
2017
Volume: 263
   
Issue: 4
Abstract
The present research article first defines two popular production functions viz, Cobb-Douglas and VRTS production frontiers and their dual cost functions and then derives their cost limited maximal outputs. This paper tells us that the cost limited maximal output is cost efficient. Here the one side goal programming problem is proposed by which the full Cobb-Douglas cost frontier, full VRTS frontier can be fitted. This paper includes the framing of goal programming by which stochastic cost frontier and stochastic VRTS frontiers are fitted. Hasan et al. [1] used a parameter approach Stochastic Frontier Approach (SFA) to examine the technical efficiency of the Malaysian domestic banks listed in the Kuala Lumpur stock Exchange (KLSE) market over the period 2005-2010. AshkanHassani [2] exposed Cobb-Douglas Production Functions application in construction schedule crashing and project risk analysis related to the duration of construction projects. Nan Jiang [3] applied Stochastic Frontier analysis to a panel of New Zealand dairy forms in 1998/99-2006/2007. © Published under licence by IOP Publishing Ltd.
About the journal
JournalIOP Conference Series: Materials Science and Engineering
PublisherInstitute of Physics Publishing
ISSN17578981