A Flexible, Globally Regular Representation of Convex Production Possibilities Frontiers

This note describes how a convex N-input-M -output production possibility frontier can be locally approximated by means of a flexible Nonseparable Nested Constant-Elasticity-of-Substitution/Constant-Elasticity-of-Transformation (NNCES-CET) restricted profit function. This technique yields a summary representation of technology sets that is globally regular and thus suitable for use in applications where regularity is crucial. Copyright Kluwer Academic Publishers 1999