Abstract
The estimation of the production function in the traditional form is deterministic and does not take into account the distribution of production activities and the heterogeneity of economic agents, providing the possibility of a new approach, a probabilistic way of analyzing the relationship between variables. This paper proposes a new production function using a vine-based copulation approach. A vine copula allows us to explore asymmetry and multivariate distributions. We perform an empirical analysis using data of companies listed in Brazil, USA, Germany, and England. The results show that the data are heterogeneous and have different degrees of temporal dependence in each country. In order to analyze the asymmetry, we investigated the families of copula and also found different substitution behavior between production factors.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Physica A: Statistical Mechanics and its Applications
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
