Specification Testing of Production Frontier Function in Stochastic Frontier Model
Xu Guo,
Gao Rong Li and
Wing-Keung Wong
MPRA Paper from University Library of Munich, Germany
Abstract:
Parametric production frontier function has been commonly employed in stochas-tic frontier model but there was no proper test statistic for its plausibility. To fill into this gap, this paper develops two test statistics to test for a hypothesized parametric production frontier function based on local smoothing and global smoothing, respectively. We then pro-pose the residual-based wild bootstrap approach to compute the p-values of our proposed test statistics. Our proposed test statistics are robust to heteroscedasticity. Simulation studies are carried out to examine the infinite sample performance of the sizes and powers of the test statistics.
Keywords: Stochastic frontier; Specification testing; Wild bootstrap. (search for similar items in EconPapers)
JEL-codes: C13 C14 (search for similar items in EconPapers)
Date: 2014-08-18
New Economics Papers: this item is included in nep-ecm, nep-eff and nep-ore
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/57999/1/MPRA_paper_57999.pdf original 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:pra:mprapa:57999
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.
Bibliographic data for series maintained by Joachim Winter ().