A frontier approach to disequilibrium models
AbstractDue to aggregation (Muellbauer, 1978), market frictions (Benassy, 1982) and stochastic manipulable perceived rationing (Weinrich, 1984) it is very likely that the quantity transacted is less than the short side of a market affected by quantity rationing. This is we might observe in a given market simultaneously excess demand and excess supply. In this paper we suggest a frontier approach to specify these inefficiencies in disequilibrium models. This is done essentially by adding a truncated disturbance term to the traditional symmetric error. The new specification allows us to test for the presence of any type of inefficiency.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics Letters.
Volume (Year): 4 (1997)
Issue (Month): 11 ()
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- Hadri, K. & Whittaker, J., 1995.
"Efficiency, environmental Contaminants and Farm Size: Testing for Links Using Stochastic Production Frontiers,"
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- Kaddour Hadri & Julie Whittaker, 1999. "Efficiency, Environmental Contaminants and Farm Size: Testing for Links Using Stochastic Production Frontiers," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 337-356, November.
- Kaddour Hadri & Cherif Guermat & Julie Whittaker, 2003. "Estimating Farm Efficiency in the Presence of Double Heteroscedasticity Using Panel Data," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 255-268, November.
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