A Model of the Production Potential with Managed Factors of Inefficiency

Abstract

The results of applied research on estimation of the production potential based on the methodology of the stochastic frontier production function are presented in the paper. The comparative analysis of the stochastic frontier models by means of estimates of technical production efficiency is carried out. A definition and a model of the production potential with managed factors of inefficiency are proposed.production potential; stochastic frontier; production function; technical efficiency