GMM estimation of stochastic frontier model with endogenous regressors

Kien Tran and Mike Tsionas

Economics Letters, 2013, vol. 118, issue 1, 233-236

Abstract: A convenient and simple GMM procedure for estimating stochastic frontier models in the presence of endogenous regressors is proposed. Monte Carlo simulations show that the proposed estimator works very well in finite samples. We apply the proposed method to panel data of Norwegian dairy farms to illustrate the usefulness of the proposed approach.

Keywords: Endogeneity; Generalized method of moments; Maximum likelihood; Technical efficiency (search for similar items in EconPapers)
JEL-codes: C13 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (55)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:118:y:2013:i:1:p:233-236

DOI: 10.1016/j.econlet.2012.10.028

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