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Estimation of Technical Inefficiency in Production Frontier Models Using Cross-Sectional Data

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Author Info

  • KUMBHAKAR, SUBAL C.

    (State University of New York - Binghamton)

  • WANG, HUNG-JEN

    (National Taiwan University)

Abstract

In this paper we discuss the specification and estimation of technical efficiency in a variety of stochastic frontier production models. The focus is on cross-sectional models. We start from the basic neoclassical production theory and introduce technical inefficiency in there. Various model specifications with several distributional assumptions on the inefficiency component are explored in detail. Theoretical and empirical issues are illustrated with empirical examples using STATA.

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Bibliographic Info

Article provided by Department of Economics, Delhi School of Economics in its journal Indian Economic Review.

Volume (Year): 45 (2010)
Issue (Month): 2 ()
Pages: 7-77

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Handle: RePEc:dse:indecr:0023

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Related research

Keywords: Production Function; Stochastic Frontier; Input and Output-Oriented Technical Efficiency; Maximum Likelihood; Truncated Distributions.;

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