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Separating Catch-up and Technical Change in Stochastic Frontier Models. A Monte Carlo Approach

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  • Álvarez, Antonio
  • del Corral, Julio

Abstract

In the empirical analysis of economic growth an interesting topic is whether backward countries move towards the technological frontier (what it is known as technological catch-up). A common approach to testing for the existence of catching-up is the estimation of stochastic frontiers. However, it is not clear under which conditions technological catch-up can be disentangled from technical change in stochastic frontier models. We try to fill this gap in the literature using Monte Carlo techniques. Keywords: Monte Carlo analysis, stochastic frontier models, technological catch-up, technical change

Suggested Citation

  • Álvarez, Antonio & del Corral, Julio, 2006. "Separating Catch-up and Technical Change in Stochastic Frontier Models. A Monte Carlo Approach," Efficiency Series Papers 2006/03, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    • Handle: RePEc:oeg:wpaper:2006/03
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    Cited by:

    1. Antonio Alvarez & Carlos Arias, 2014. "A selection of relevant issues in applied stochastic frontier analysis," Economics and Business Letters, Oviedo University Press, vol. 3(1), pages 3-11.

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