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Count data stochastic frontier models, with an application to the patents–R&D relationship

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  • Eduardo Fé

    ()

  • Richard Hofler

    ()

Abstract

This article introduces a new count data stochastic frontier model that researchers can use in order to study efficiency in production when the output variable is a count (so that its conditional distribution is discrete). We discuss parametric and nonparametric estimation of the model, and a Monte Carlo study is presented in order to evaluate the merits and applicability of the new model in small samples. Finally, we use the methods discussed in this article to estimate a production function for the number of patents awarded to a firm given expenditure on R&D. Copyright Springer Science+Business Media, LLC 2013

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File URL: http://hdl.handle.net/10.1007/s11123-012-0286-y
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Bibliographic Info

Article provided by Springer in its journal Journal of Productivity Analysis.

Volume (Year): 39 (2013)
Issue (Month): 3 (June)
Pages: 271-284

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Handle: RePEc:kap:jproda:v:39:y:2013:i:3:p:271-284

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Web page: http://www.springerlink.com/link.asp?id=100296

Related research

Keywords: Discrete data; Stochastic frontier analysis; Local maximum likelihood; Maximum simulated likelihood; Halton sequence; C01; C13; C14; C16; C25; C51;

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