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Estimation of nonparametric inefficiency effects stochastic frontier models with an application to British manufacturing

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  • Tran, Kien C.
  • Tsionas, Efthymios G.

Abstract

The 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 Info

Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 26 (2009)
Issue (Month): 5 (September)
Pages: 904-909

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Handle: RePEc:eee:ecmode:v:26:y:2009:i:5:p:904-909

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Web page: http://www.elsevier.com/locate/inca/30411

Related research

Keywords: Two-step semiparametric estimator Technical efficiency Marginal effects Local linear estimator;

References

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