EconPapers    
Economics at your fingertips  
 

Regularization of Nonparametric Frontier Estimators

Abdelaati Daouia (), Jean-Pierre Florens and Leopold Simar

No 10-168, TSE Working Papers from Toulouse School of Economics (TSE)

Abstract: In production theory and efficiency analysis, we are interested in estimating the production frontier which is the locus of the maximal attainable level of an output (the production), given a set of inputs (the production factors). In other setups, we are rather willing to estimate an input (or cost) frontier that is defined as the minimal level of the input (cost) attainable for a given set of outputs (goods or services produced). In both cases the problem can be viewed as estimating a surface under shape constraints (monotonicity, . . . ). In this paper we derive the theory of an estimator of the frontier having an asymptotic normal distribution. The basic tool is the order-m partial frontier where we let the order m to converge to infinity when n ! 1 but at a slow rate. The final estimator is then corrected for its inherent bias. We thus can view our estimator as a regularized frontier estimator which, in addition, is more robust to extreme values and outliers than the usual nonparametric frontier estimators, like FDH. The performances of our estimators are evaluated in finite samples through some Monte-Carlo experiments. We illustrate also how to provide, in an easy way, confidence intervals for the frontier function both with a simulated data set and a real data set.

Date: 2009-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.tse-fr.eu/sites/default/files/medias/doc/wp/etrie/10-168.pdf Full text (application/pdf)

Related works:
Journal Article: Regularization of nonparametric frontier estimators (2012) Downloads
Working Paper: Regularization of nonparametric frontier estimators (2012)
Working Paper: Regularization of Nonparametric Frontier Estimators (2009) Downloads
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:tse:wpaper:22821

Access Statistics for this paper

More papers in TSE Working Papers from Toulouse School of Economics (TSE) Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2025-03-22
Handle: RePEc:tse:wpaper:22821