Production Function and Efficiency：A Case of Chinese Real Estate Industry

摘要

By combining parameter and non-parametric method, this paper proposed a new way to construct the production function of real estate industry in china. Firstly, Data Envelopment Analysis (DEA) is used to observe real estate industry output efficiency and classify the DMUs into efficiency and inefficiency. Secondly, a class of summation exponential production functions with the analysis of Cobb- Douglas production function is given, which could describe complex production process. At last, two stages DEA-regression method is employed to estimate the new kind of production function, which responds to the definition of economics. As an application, the real estate industry of China is considered.