We investigate the choice of default priors for use with likelihood for Bayesian and frequentist inference. Such a prior is a density or relative density that weights an observed likelihood function, leading to the elimination of parameters that are not of interest and then a density-type...

We develop a generalized production framework with endogenous “production techniques” that serve to organize raw factor inputs in an efficient manner. We establish a positive relationship between production flexibility and cost efficiency. By allowing firms to differ in technology...