A Stochastic Frontier Model with an Effect Stochastic Frontier Models with Endogenous Selection

Yi-Ting Chen, Yu-Chin Hsu and Hung-Jen Wang
Additional contact information
Yi-Ting Chen: Institute of Economics, Academia Sinica, Taipei, Taiwan, https://www.econ.sinica.edu.tw/
Hung-Jen Wang: Department of Economics, National Taiwan University

No 14-A006, IEAS Working Paper : academic research from Institute of Economics, Academia Sinica, Taipei, Taiwan

Abstract: Government policies are frequently used throughout the world to promote productivity. Some of the policies are designed to enhance production technology, and others are meant to improve production efficiency. In addition, another issue to consider in designing and evaluating policies is whether a mediator is required/effective in achieving the final outcome. To better understand and evaluate the policies, we propose a new stochastic frontier model with a treatment status and a mediator, both of which are allowed to be endogenous. The model allows us to decompose the total program (treatment) effect into the technology and efficiency components, and it also allows us to investigate whether the effect takes place directly from the program or indirectly through a particular mediator. We illustrate the empirical application of the model using data for India to study the effects of large dams on the local districts’ agricultural production.

Keywords: stochastic frontier models; treatment effect; mediation analysis (search for similar items in EconPapers)
JEL-codes: E32 R10 (search for similar items in EconPapers)
Pages: 66 pages
Date: 2014-04, Revised 2015-09
New Economics Papers: this item is included in nep-ecm, nep-eff and nep-ger
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.econ.sinica.edu.tw/~econ/pdfPaper/14-A006.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sin:wpaper:14-a006

Access Statistics for this paper

More papers in IEAS Working Paper : academic research from Institute of Economics, Academia Sinica, Taipei, Taiwan Contact information at EDIRC.
Bibliographic data for series maintained by HsiaoyunLiu ().