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AbstractThis paper addresses endogeneity of inputs in estimating a semiparametric smooth coefficient production function using a system approach. The system consists of a translog production function and the first‐order conditions (FOC) of profit maximization. Each coefficient of the production function is an unknown function of some exogenous environmental variables. This makes the production function observation‐specific so long as the environmental variables are observation‐specific. The estimation of the system involves applying the functional coefficient instrumental variable method (Cai et al., 2006) for the endogeneity of inputs in the first step, and the semiparametric smooth coefficient seemingly unrelated regression method (Henderson et al., 2015) in the second step. Using a Chinese food industry data set, we show that the semiparametric system approach gives the most economically meaningful input elasticity estimates compared with alternative models. We also calculate the returns to scale along with the technical and allocative inefficiency estimates.

Background: The World Health Organization (WHO) has called for integration of mental health into primary care for a decade. In Western countries, around 15% to 25% of patients with common mental disorders including mood and anxiety disorders seek help from primary care physicians (PCPs). The rate is only about 5% in China. Aims: This article reviews the Chinese findings on the barriers to primary care for common mental disorders and how they compared with Western findings. Methods: A narrative literature review was conducted, focusing on literature published from mid-1990s in English or Chinese. Patient, PCP and health system factors were reviewed. Results: Although Chinese and Western findings show similar themes of barriers, the Chinese have stronger barriers in most aspects, including under-recognition of the need for treatment, stigma on mental illness, somatization, worries about taking psychiatric drugs, uncertainties in the role, competency and legitimacy of PCPs in mental health care and short consultation time. Conclusion: Current policies in China emphasize enhancement of mental health facilities and workforce in the community. Our review suggests that patients' intention to seek help and PCPs' competency in mental health care are other fundamental factors to be addressed.