Manoranjan Pal (Economic Research Unit, Indian Statistical Institute 203 B. T. Road, Kolkata 700 108, India)
Abstract
This paper reviews the Stochastic Frontier Production Function (SFPF) Models with error components, termed as technical inefficiency error and noise variable in a cross section framework. It tries to unify all such models incorporating (i) truncation or non-normality of the technical inefficiency error term and (ii) correlation between the two error components. Allocative inefficiency error terms are also introduced and are assumed to be correlated among themselves. JEL Classification: C10
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Article provided by Department of Economics, Delhi School of Economics in its journal Indian Economic Review.
Volume (Year): 39 (2004) Issue (Month): 1 (January) Pages: 7-18 Download reference. The following formats are available: HTML
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