On estimating efficiency effects in a stochastic frontier model
Satya Paul () and
European Journal of Operational Research, 2018, vol. 271, issue 2, 769-774
This paper proposes a technical efficiency effects model within the framework of stochastic production frontier. The efficiency effects are specified by a standard normal cumulative distribution function of exogenous variables which ensures the efficiency scores to lie in a unit interval. This specification eschews one-sided error term present in almost all the existing inefficiency effects models. The efficiency scores are obtained directly once the parameters of the model are estimated. An empirical exercise based on the widely used Philippines rice farming data illustrates the simplicity and usefulness of the proposed model.
Keywords: Stochastic frontier; Non-linear least squares; Standard normal cumulative distribution function; Technical efficiency (search for similar items in EconPapers)
JEL-codes: C51 D24 Q12 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:271:y:2018:i:2:p:769-774
Access Statistics for this article
European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati
More articles in European Journal of Operational Research from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().