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Estimating Stochastic Frontier Systems with Unbalanced Panel Data: The Case of Floor Tile Manufactories in Egypt

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Seale, James M, Jr

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Abstract

A generalized stochastic frontier system is fitted with unbalanced panel data of Egyptian floor tileries and estimated using OLS, "within," feasible GLS, and maximum likelihood. Hausman tests indicate "within" is the correct estimator for the data. Estimates of firm-level techncial and allocative inefficiencies (and their costs) are presented for each of the estimators. Finally, sources of technical inefficiency are investigated. Copyright 1990 by John Wiley & Sons, Ltd.

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Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.

Volume (Year): 5 (1990)
Issue (Month): 1 (January-March)
Pages: 59-74
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Handle: RePEc:jae:japmet:v:5:y:1990:i:1:p:59-74

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