Accounting For Unobservables In Production Models: Management And Inefficiency
AbstractThis paper explores the role of unobserved managerial ability in production and its relationship with technical efficiency. Previous analyses of managerial ability have been based on strong assumptions about its role in production or the use of proxies. We avoid these shortcomings by introducing managerial ability as an unobserved random variable in a translog production function. The resulting empirical model can be estimated as a production frontier with random coefficients.
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Bibliographic InfoPaper provided by Econometric Society in its series Econometric Society 2004 Australasian Meetings with number 341.
Date of creation: 11 Aug 2004
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production; technical efficiency; translog production function;
Other versions of this item:
- Antonio Álvarez & Carlos Arias & William Greene, 2004. "Accounting for unobservables in production models:management and inefficiency," Economic Working Papers at Centro de Estudios Andaluces E2004/72, Centro de Estudios Andaluces.
- A - General Economics and Teaching
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