A microfoundation for stochastic frontier analysis

Koki Oikawa

Economics Letters, 2016, vol. 139, issue C, 15-17

Abstract: This paper provides a microfoundation for distributions of technical inefficiency in parametric stochastic production frontier analysis. It shows that dial-setting technology à la Jovanovic and Nyarko (1996) implies a gamma distribution with a specific set of parameters that depends on a manager’s experience or his/her prediction ability.

Keywords: Stochastic frontier production function; Learning-by-doing; Gamma distribution (search for similar items in EconPapers)
JEL-codes: C13 D83 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:139:y:2016:i:c:p:15-17

DOI: 10.1016/j.econlet.2015.12.006

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