ESTIMATION OF A PRODUCTION FRONTIER MODEL: WITH APPLICATION TO THE PASTORAL ZONE OF EASTERN AUSTRALIA
This paper considers a statistical model for a production frontier that is consistent with the traditional (nonstochastic) definition of a production function given in microeconomic theory. Limiting cases of the model are the familiar average production function and an envelope production function. Maximum‐likelihood estimators for the parameters of the model are defined. The three related models are applied in the estimation of a production frontier for the Pastoral Zone of Eastern Australia with use of data from the Australian Grazing Industry Survey.