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A constrained state space approach for estimating firm efficiency

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  • Kutlu, Levent

Abstract

In this study a panel data state space approach is used to estimate efficiencies of productive units where the states are required to lie in a closed convex constraint set. The constraints are imposed by using oblique projections of state variables onto the constraint set. This approach provides a flexible approximation that can capture the time-varying pattern of firm specific efficiency.

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  • Kutlu, Levent, 2017. "A constrained state space approach for estimating firm efficiency," Economics Letters, Elsevier, vol. 152(C), pages 54-56.
    • Handle: RePEc:eee:ecolet:v:152:y:2017:i:c:p:54-56
    DOI: 10.1016/j.econlet.2017.01.005
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Levent Kutlu, 2022. "Spatial stochastic frontier model with endogenous weighting matrix," Empirical Economics, Springer, vol. 63(4), pages 1947-1968, October.
    2. Baik, Hyeoncheol & Han, Sumin & Joo, Sunghoon & Lee, Kangbok, 2022. "A bank's optimal capital ratio: A time-varying parameter model to the partial adjustment framework," Journal of Banking & Finance, Elsevier, vol. 142(C).
    3. Levent Kutlu & Ran Wang, 2021. "Greenhouse Gas Emission Inefficiency Spillover Effects in European Countries," IJERPH, MDPI, vol. 18(9), pages 1-14, April.
    4. Mustafa U. Karakaplan & Levent Kutlu, 2019. "School district consolidation policies: endogenous cost inefficiency and saving reversals," Empirical Economics, Springer, vol. 56(5), pages 1729-1768, May.
    5. Kutlu, Levent, 2023. "Calculating efficiency for spatial autoregressive stochastic frontier model," Economics Letters, Elsevier, vol. 225(C).
    6. Kutlu, Levent & Tran, Kien C. & Tsionas, Mike G., 2020. "A spatial stochastic frontier model with endogenous frontier and environmental variables," European Journal of Operational Research, Elsevier, vol. 286(1), pages 389-399.
    7. Levent Kutlu & Ran Wang, 2018. "Estimation of cost efficiency without cost data," Journal of Productivity Analysis, Springer, vol. 49(2), pages 137-151, June.
    8. Kutlu, Levent & Tran, Kien C. & Tsionas, Mike G., 2019. "A time-varying true individual effects model with endogenous regressors," Journal of Econometrics, Elsevier, vol. 211(2), pages 539-559.
    9. Kutlu, Levent, 2018. "A distribution-free stochastic frontier model with endogenous regressors," Economics Letters, Elsevier, vol. 163(C), pages 152-154.
    10. Kutlu, Levent, 2018. "Estimating efficiency in a spatial autoregressive stochastic frontier model," Economics Letters, Elsevier, vol. 163(C), pages 155-157.

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    More about this item

    Keywords

    Kalman filter; Panel data; Stochastic frontier;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables

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