Panel stochastic frontier models with endogeneity

Mustafa Karakaplan

Stata Journal, 2022, vol. 22, issue 3, 643-663

Abstract: In this article, I introduce xtsfkk as a new command for fitting panel stochastic frontier models with endogeneity. The advantage of xtsfkk is that it can control for the endogenous variables in the frontier and the inefficiency term in a longitudinal setting. Hence, xtsfkk performs better than standard panel frontier estimators such as xtfrontier that overlook endogeneity by design. Moreover, xtsfkk uses Mata’s moptimize() functions for substantially faster execution and completion speeds. I also present a set of Monte Carlo simulations and examples demonstrating the performance and usage of xtsfkk.

Keywords: xtsfkk; panel stochastic frontier models; longitudinal data; en- dogeneity; production frontier; cost frontier; endogenous inefficiency (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:tsj:stataj:y:22:y:2022:i:3:p:643-663

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DOI: 10.1177/1536867X221124539

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