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An alternative method for predicting technical inefficiency in stochastic frontier models

Yoshihiko Tsukuda and Tatsuyoshi Miyakoshi

Applied Economics Letters, 2003, vol. 10, issue 11, 667-670

Abstract: The median is proposed as an alternative to the expectation of the conditional distribution in order to predict the technical inefficiency in stochastic frontier production models with panel data. Numerical comparison reveals that the two predictors can take different values when the distribution is skewed.

Date: 2003
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DOI: 10.1080/1350485032000136388

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