Estimation of nonparametric inefficiency effects stochastic frontier models with an application to British manufacturing
AbstractThe purpose of this paper is to propose a simple stochastic frontier model with a non-parametric specification for covariates affecting the mean of technical inefficiency. We derive a simple two-step semiparametric estimation procedure to estimate the frontier parameters as well as the mean of the technical inefficiency. The consistency of the estimator and its asymptotic normality are shown. The proposed method is illustrated using a large panel data set of British manufacturing firms.
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Bibliographic InfoArticle provided by Elsevier in its journal Economic Modelling.
Volume (Year): 26 (2009)
Issue (Month): 5 (September)
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Web page: http://www.elsevier.com/locate/inca/30411
Two-step semiparametric estimator Technical efficiency Marginal effects Local linear estimator;
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