A spatial autoregressive stochastic frontier model for panel data with asymmetric efficiency spillovers

Anthony J. Glass, Karligash Kenjegalieva () and Robin Sickles

Journal of Econometrics, 2016, vol. 190, issue 2, 289-300

Abstract: By blending seminal literature on non-spatial stochastic frontier models with key contributions to spatial econometrics we develop a spatial autoregressive (SAR) stochastic frontier for panel data. The specification of the SAR frontier allows efficiency to vary over time and across the cross-sections. Efficiency is calculated from a composed error structure by assuming a half-normal distribution for inefficiency. The SAR frontier is estimated using maximum likelihood methods taking into account the endogenous SAR variable. The application of the estimator to an aggregate production frontier for European countries highlights, among other things, the asymmetry between efficiency spillovers to and from a country.

Keywords: Spatial autoregressive dependence; Stochastic frontier analysis (SFA); Asymmetric directional efficiency spillovers; Aggregate production; European countries (search for similar items in EconPapers)
JEL-codes: C23 C51 D24 E23 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (76)

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Working Paper: A Spatial Autoregressive Stochastic Frontier Model for Panel Data with Asymmetric Efficiency Spillovers (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:econom:v:190:y:2016:i:2:p:289-300

DOI: 10.1016/j.jeconom.2015.06.011

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