 Stochastic frontier modelsMPRA Paper from University Library of Munich, Germany Abstract: The stochastic frontier model was first proposed in the context of production function estimation to account for the effect of technical inefficiency. The inefficiency causes actual output to fall below the potential level (that is, the production frontier) and also raises production cost above the minimum level (that is, the cost frontier). Recent applications of the model are found in many fields of study including labour, finance, and economic growth. In these applications, the observed outcome (of wages, investment, and so on) is modelled as being deviating from a frontier level in one direction owing to factors such as information asymmetry. Keywords: aftermarkets; allocative inefficiency; convergence; copulas; cost functions; duality; financing constraints; fixed-effect panel estimators; labour market search models; likelihood functions; nonparametric estimation; production function estimation; production functions; semiparametric estimation; stochastic cost frontiers; stochastic frontier models; technical inefficiency; technological catch-up; truncated distributions (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:31079 Access Statistics for this paper More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC. |
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