Confidence Statements for Efficiency Estimates from Stochastic Frontier Models

William C. Horrace () and Peter Schmidt

Econometrics from EconWPA

Abstract: This paper is an empirical study of the uncertainty associated with estimates from stochastic frontier models. We show how to construct confidence intervals for estimates of technical efficiency levels under different sets of assumptions ranging from the very strong to the relatively weak. We demonstrate empirically how the degree of uncertainty associated with these estimates relates to the strength of the assumptions made and to various features of the data.

Keywords: Confidence intervals; stochastic frontier models; efficiency measurement (search for similar items in EconPapers)
JEL-codes: C13 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ecm and nep-eff
Date: 2002-06-20
Note: Type of Document - Acrobat PDF; prepared on IBM PC; to print on HP; pages: 42; figures: Included. None
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpem:0206006

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