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Identifiability of the Stochastic Frontier Models

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Author Info
Bandyopadhyay, Debdas
Das, Arabinda

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Abstract

This paper examines the identifiability of the standard single-equation stochastic frontier models with uncorrelated and correlated error components giving, inter alia, mathematical content to the notion of “near-identifiability” of a statistical model. It is seen that these models are at least locally identifiable but suffer from the “near-identifiability” problem. Our results also highlight the pivotal role played by the Signal to Noise Ratio in the “near-identifiablity” of the stochastic frontier models.

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File URL: http://mpra.ub.uni-muenchen.de/8032/
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 8032.

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Date of creation: Jun 2007
Date of revision: Jan 2008
Handle: RePEc:pra:mprapa:8032

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Related research
Keywords: Identification Stochastic frontier model Information Matrix Signal to Noise Ratio

Find related papers by JEL classification:
C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - General
C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation and Testing
C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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  1. A. Capitanio & A. Azzalini & E. Stanghellini, 2003. "Graphical models for skew-normal variates," Scandinavian Journal of Statistics, Danish Society for Theoretical Statistics, Finnish Statistical Society, Norwegian Statistical Association and Swedish Statistical Association, vol. 30(1), pages 129-144. [Downloadable!] (restricted)
  2. Murray D Smith, 2004. "Stochastic Frontier Models With Correlated Error Components," Econometric Society 2004 Australasian Meetings 121, Econometric Society. [Downloadable!]
  3. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July. [Downloadable!] (restricted)
  4. Stevenson, Rodney E., 1980. "Likelihood functions for generalized stochastic frontier estimation," Journal of Econometrics, Elsevier, vol. 13(1), pages 57-66, May. [Downloadable!] (restricted)
  5. Rothenberg, Thomas J, 1971. "Identification in Parametric Models," Econometrica, Econometric Society, vol. 39(3), pages 577-91, May. [Downloadable!] (restricted)
  6. Greene, William H., 1990. "A Gamma-distributed stochastic frontier model," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 141-163. [Downloadable!] (restricted)
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This page was last updated on 2008-11-18.


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