On the choice of functional form in stochastic frontier modeling
AbstractThis paper examines the effect of functional form specification on the estimation of technical efficiency using a panel data set of 125 olive-growing farms in Greece for the period 1987–93. The generalized quadratic Box-Cox transformation is used to test the relative performance of alternative, widely used, functional forms and to examine the effect of prior choice on final efficiency estimates. Other than the functional specifications nested within the Box-Cox transformation, the comparative analysis includes the minflex Laurent translog and generalized Leontief that possess desirable approximation properties. The results indicate that technical efficiency measures are very sensitive to the choice of functional specification. Perhaps most importantly, the choice of functional form affects the identification of the factors affecting individual performance – the sources of technical inefficiency. The analysis also shows that while specification searches do narrow down the set of feasible alternatives, the identification of the most appropriate functional specification might not always be (statistically) feasible. Copyright Springer-Verlag Berlin Heidelberg 2003
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Springer in its journal Empirical Economics.
Volume (Year): 28 (2003)
Issue (Month): 1 (January)
Contact details of provider:
Postal: Stumpergasse 56, A-1060 Vienna
Phone: ++43 - (0)1 - 599 91 - 0
Fax: ++43 - (0)1 - 599 91 - 555
Web page: http://link.springer.de/link/service/journals/00181/index.htm
More information through EDIRC
Find related papers by JEL classification:
- JEL - Labor and Demographic Economics - - - - -
- Cla - Mathematical and Quantitative Methods - - - - -
- Sys - - - - - -
- Num - Economic History - - - - -
- C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
- C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Sanna-Mari Hynninen, 2009. "Matching in local labor markets: a stochastic frontier approach," Journal of Productivity Analysis, Springer, vol. 31(1), pages 15-26, February.
- Bannour Boutheina & Labidi Moez, 2013. "Efficience des banques commerciales Tunisiennes: etude par lâ€™approche de frontiÃ¨re stochastique," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 60(1), pages 103-132, March.
- Morteza Haghiri & James Nolan & Kien Tran, 2004. "Assessing the impact of economic liberalization across countries: a comparison of dairy industry efficiency in Canada and the USA," Applied Economics, Taylor and Francis Journals, vol. 36(11), pages 1233-1243.
- Konstantinos Giannakas & Kien Tran & Vangelis Tzouvelekas, 2003. "Predicting technical effciency in stochastic production frontier models in the presence of misspecification: a Monte-Carlo analysis," Applied Economics, Taylor and Francis Journals, vol. 35(2), pages 153-161.
- Lambarraa, Fatima, 2011. "Dynamic Efficiency Analysis of Spanish Outdoor and Greenhouse Horticulture Sector," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114408, European Association of Agricultural Economists.
- Kanybek Nur-tegin, 2007. "Do Transition Economies and Developing Countries Have Similar Destinies?," Atlantic Economic Journal, International Atlantic Economic Society, vol. 35(3), pages 327-342, September.
- Liangjun Su & Zhenlin Yang, 2008.
"Asymptotics and Bootstrap for Transformed Panel Data Regressions,"
Development Economics Working Papers
22477, East Asian Bureau of Economic Research.
- Liangjun Su & Zhenlin Yang, 2009. "Asymptotics and Bootstrap for Transformed Panel Data Regressions," Working Papers 03-2009, Singapore Management University, School of Economics.
- Lambarraa, Fatima & Serra, Teresa & Gil Roig, Jose Maria, 2006. "Technical efficiency analysis and decomposition of productivity growth of Spanish olive farms," 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece 10071, European Association of Agricultural Economists.
- Monchuk, Daniel C. & Zhuo, Chen, 2008. "Explaining Production Inefficiency in China’s Agriculture using Data Envelope Analysis and Semi-Parametric Bootstrapping," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6456, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Lambarraa, Fatima, 2012. "The Spanish Horticulture Sector: A dynamic efficiency analysis of Outdoor and Greenhouse farms," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126797, International Association of Agricultural Economists.
- Dios-Palomares, Rafaela & Martínez-Paz, José M., 2011. "Technical, quality and environmental efficiency of the olive oil industry," Food Policy, Elsevier, vol. 36(4), pages 526-534, August.
- Tran, Kien C. & Tsionas, Efthymios G., 2009. "Estimation of nonparametric inefficiency effects stochastic frontier models with an application to British manufacturing," Economic Modelling, Elsevier, vol. 26(5), pages 904-909, September.
- Amores, Antonio F. & Contreras, Ignacio, 2009. "New approach for the assignment of new European agricultural subsidies using scores from data envelopment analysis: Application to olive-growing farms in Andalusia (Spain)," European Journal of Operational Research, Elsevier, vol. 193(3), pages 718-729, March.
- Sauer, J.F., 2005. "“Efficiency Flooding”: Black-Box Frontiers and Policy Implications," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 2(1), pages 17-52.
- Michel Dumont, 2006. "Foreign outsourcing, labour demand and the choice of functional form," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 255-273, November.
- Ariel Dinar & Giannis Karagiannis & Vangelis Tzouvelekas, . "Evaluating the Impact of Public and Private Agricultural Extension on Farms Performance: A Non-neutral Stochastic Frontier Approach," Working Papers 0205, University of Crete, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F Baum).
If references are entirely missing, you can add them using this form.