Research On The Estimation Of Total Production Function From The Perspective Of Efficiency Deficiency

This paper intends to estimate aggregate production function from the production function definition.The production function definition urges production function to reflect the relationship of essential inputs and ultimate production.Due to ultimate production indistinct,we import DEA to estimate decision units' efficiencies and then the effective outputs and regard it as ultimate production.We apply different DEA models according to different hypotheses to returns to scale to the state of produce,concretely speak,we apply CCR model when hypothesis constant returns to scale while apply BCC model to variable returns to scale,furthermore,different hypotheses to returns to scale influence parameters of function model.The basic idea of aggregate production function estimation is to estimate subsistent production function model while substituting actual production for ultimate production.In this paper,we use only two production function models,the C-D production function model and the CES production function model.To estimate C-D production function model,we transform the function into logarithm status and calculate its' parameters with least square method.Since the logarithm form of CES production function model is not linear to its' whole parameters,we choose to combine regression analysis with an equation between essential marginal production and essential shadow price from producer equilibrium market to estimate CES function.In addition,since we study the relationship of essential input and ultimate production,we must fill the equation with the essential shadow price instead of real price and the marginal production belongs to ultimate production.To find essential shadow price we shall construct production frontiers,to construct production frontiers we shall use effective output,all of these evidences indicate that the whole process of function estimation is an inseparable entirety.In empirical analysis,we estimate Guizhou province's aggregate production function with the data of labor input,capital input and GDP output in real terms during 1978-2015.The stock of capital is estimated with perpetual inventory method.The answer of empirical analysis not only illustrates that our method is practicable but indicates a way to optimize the distribution and utilization of resources.