Calculating efficiency for spatial autoregressive stochastic frontier model

Levent Kutlu

Economics Letters, 2023, vol. 225, issue C

Abstract: When there are efficiency spillovers, we can use a spatial autoregressive stochastic frontier model to estimate total (spillover-corrected) efficiencies. Glass et al. (2016) provide a formula for total efficiency in this context, which is an approximation. We provide the exact formula for the spillover-corrected efficiency. Moreover, we derive total, direct, and indirect marginal effects of environmental variables on spillover-corrected efficiency.

Keywords: Efficiency; Spatial autoregressive model; Stochastic frontier analysis (search for similar items in EconPapers)
JEL-codes: C20 C21 D24 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:225:y:2023:i:c:s016517652300068x

DOI: 10.1016/j.econlet.2023.111043

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