Endogenous Inputs and Environmental Variables in Battese and Coelli's (1995) Stochastic Frontier Model

Takahiro Tsukamoto ()
Additional contact information
Takahiro Tsukamoto: Graduate School of Economics, Nagoya University

Economics Bulletin, 2019, vol. 39, issue 3, 2228-2236

Abstract: This study provides a guideline for dealing with endogenous inputs and environmental variables in Battese and Coelli's (1995) stochastic frontier model, which has been used in a vast number of empirical studies. The presence of endogenous variables in Battese and Coelli's model leads to inconsistent parameter estimates; also, estimates in the studies that use their model may be biased. Our model uses limited information maximum likelihood methods to correct these biases. The Monte Carlo simulations provided in this article show that our estimators perform well.

Keywords: Endogeneity; Environmental variables; Stochastic frontier analysis (SFA); Technical efficiency; Battese–Coelli estimator (search for similar items in EconPapers)
JEL-codes: C5 D2 (search for similar items in EconPapers)
Date: 2019-09-30
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2019/Volume39/EB-19-V39-I3-P209.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:ebl:ecbull:eb-18-00917

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().