Quantile estimation of the stochastic frontier model

Samah Jradi, Christopher Parmeter and John Ruggiero

Economics Letters, 2019, vol. 182, issue C, 15-18

Abstract: The stochastic frontier model remains popular within the field of efficiency analysis and yet it remains deeply connected to the notion of a conditional mean. Recent research has attempted to conceive of, and estimate, the stochastic frontier model in a quantile setting. We demonstrate here that the stochastic frontier corresponds explicitly to a specific quantile of the output distribution and provide a computational approach to recover this quantile. An empirical illustration demonstrates comparable performance with more classical methods of estimation of the stochastic frontier model.

Keywords: Quantile function; True quantile; Skewed normal; Efficiency (search for similar items in EconPapers)
JEL-codes: C1 C3 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:182:y:2019:i:c:p:15-18

DOI: 10.1016/j.econlet.2019.05.038

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