On Spatio-Temporal Stochastic Frontier Models

Elisa Fusco, Giuseppe Arbia, Francesco Vidoli and Vincenzo Nardelli

Papers from arXiv.org

Abstract: In the literature on stochastic frontier models until the early 2000s, the joint consideration of spatial and temporal dimensions was often inadequately addressed, if not completely neglected. However, from an evolutionary economics perspective, the production process of the decision-making units constantly changes over both dimensions: it is not stable over time due to managerial enhancements and/or internal or external shocks, and is influenced by the nearest territorial neighbours. This paper proposes an extension of the Fusco and Vidoli [2013] SEM-like approach, which globally accounts for spatial and temporal effects in the term of inefficiency. In particular, coherently with the stochastic panel frontier literature, two different versions of the model are proposed: the time-invariant and the time-varying spatial stochastic frontier models. In order to evaluate the inferential properties of the proposed estimators, we first run Monte Carlo experiments and we then present the results of an application to a set of commonly referenced data, demonstrating robustness and stability of estimates across all scenarios.

Date: 2024-10
New Economics Papers: this item is included in nep-eff and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://arxiv.org/pdf/2410.20915 Latest version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:2410.20915

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().