Endogeneity in stochastic frontier models

Christine Amsler, Artem Prokhorov and Peter Schmidt

Journal of Econometrics, 2016, vol. 190, issue 2, 280-288

Abstract: Stochastic frontier models are typically estimated by maximum likelihood (MLE) or corrected ordinary least squares. The consistency of either estimator depends on exogeneity of the explanatory variables (inputs, in the production frontier setting). We will investigate the case that one or more of the inputs is endogenous, in the simultaneous equation sense of endogeneity. That is, we worry that there is correlation between the inputs and statistical noise or inefficiency.

Keywords: Endogeneity; Stochastic frontier; Efficiency measurement (search for similar items in EconPapers)
JEL-codes: C10 C26 C36 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (121)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:econom:v:190:y:2016:i:2:p:280-288

DOI: 10.1016/j.jeconom.2015.06.013

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