Keynesian vs austrian debates leading up to the resession.

You want to show me that with stochastic frontier you can calculate and quantify underpayment, but you're unable or unwilling to show me an example of it in action. I don't know why you think I should take your word for it or Hofler's or Murphy's. If you do come out with a concrete example of it, let me know.

 

You fib so easily. I've not only given you an econometric technique capable of measuring the inefficiency I have also given an example of the researchers who have used it. You merely show that you're not interested in the economics. This doesn't surprise me as you were so unaware of the nature of economic costs. Very basic stuff!

 

http://www.agrod.com/frontier/Hofler1992.pdf

Crikey a paper that's free! (Hopefully this isn't a pirated copy)

Maybe I'm a dolt, but doing that type of math in this wysiwyg editor would be a nightmare.

 

In terms of the econometrics its actually a lot easier than it seems. Rather than going with one normally distributed error, you have two with one unidirectional (depending on whether its based on a cost function or production function; here it will be used to understand the underpayment, allowing testing of hypothesis such as Hofler and Murphy's testing of the job search model)

 

I'm not interested in pseudo-economic humbug. You want me to schlep through this mumbo jumbo when nothing you've said has given the slightest iota of confidence that it has any more value than treatises on Medieval alchemy. You want to waste my time on it when you can't even be bothered to give me a single example of it in the real world. And I don't think it could possibly because value is subjective; therefore, there can be no such thing as an optimal value of anything--labor, goods, or anything else--no matter how many made-up equations you run it through.

You might as well prattle about the mathematics of literature. Is Oliver Twist a better novel than Moby Dick? Well, will just run it through a fancy equation somebody made up! Sorry, I'm not about to expend a single second reading a paper on that.

 

I stopped here. Given you made a pathetic error and I've been good enough to correct it, you're wasting my time. I'm not interested in your anti-intellectualism