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Flexible panel stochastic frontier model with serially correlated errors

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  • Huang, Yu-Fan
  • Luo, Sui
  • Wang, Hung-Jen

Abstract

We propose a flexible dynamic panel stochastic frontier model with a feasible estimation strategy. The model accommodates individual heterogeneity and allows for an ARMA(p,q) specification of the model’s serial correlations. Distribution assumptions are also flexible. The dynamics are specified through the composed error of the model, rather than through its individual components.

Suggested Citation

  • Huang, Yu-Fan & Luo, Sui & Wang, Hung-Jen, 2018. "Flexible panel stochastic frontier model with serially correlated errors," Economics Letters, Elsevier, vol. 163(C), pages 55-58.
    • Handle: RePEc:eee:ecolet:v:163:y:2018:i:c:p:55-58
    DOI: 10.1016/j.econlet.2017.11.034
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    References listed on IDEAS

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