On the Distribution of Estimated Technical Efficiency in Stochastic Frontier Models: Revisited
Both theoretical and empirical literatures on the stochastic frontier production model have been substantially enriched since 1977. However, attempts to derive the distribution of the estimated one-sided error term, even under restricted assumptions, have only recently been provided. This study attempts to derive the distribution of the estimated one-sided inefficiency error and several important statistical properties under fairly general assumptions. We also derive the distribution of estimated technical efficiency and provide an empirical illustration.
Volume (Year): 10 (2011)
Issue (Month): 1 (April)
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