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A selection of relevant issues in applied stochastic frontier analysis

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  • Antonio Alvarez
  • Carlos Arias

Abstract

This paper provides a concise review of a broad set of concepts, models and estimation issues in the field of stochastic frontier analysis. The goal is to provide practitioners with a quick guide to some key ideas. The review is restricted to single-output models estimated by econometric methods. Among the conceptual issues are the interpretation and the paths to reduce inefficiency. The modelling and estimation parts deal with topics such as explaining inefficiency, time-varying inefficiency and firm heterogeneity.

Suggested Citation

  • 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.
    • Handle: RePEc:ove:journl:aid:10357
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    File URL: https://reunido.uniovi.es/index.php/EBL/article/view/10357
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    Cited by:

    1. Álvarez, Antonio & Garduño, Rafael & Núñez, Héctor, 2016. "Modelling the effect of crime on economic activity: The case of Mexican states," Efficiency Series Papers 2016/01, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    2. Christian Grovermann & Sylvain Quiédeville & Adrian Muller & Florian Leiber & Matthias Stolze & Simon Moakes, 2021. "Does organic certification make economic sense for dairy farmers in Europe?–A latent class counterfactual analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 52(6), pages 1001-1012, November.
    3. Stefano Mainardi, 2018. "Fishing vessel efficiency, skipper skills and hake pricetransmission in a small island economy," Review of Agricultural, Food and Environmental Studies, INRA Department of Economics, vol. 99(3-4), pages 215-251.
    4. González, Eduardo & Cárcaba, Ana & Ventura, Juan, 2015. "How car dealers adjust prices to reach the product efficiency frontier in the Spanish automobile market," Omega, Elsevier, vol. 51(C), pages 38-48.
    5. Bernardina Algieri & Antonio à lvarez, 2023. "Assessing the ability of regions to attract foreign tourists: The case of Italy," Tourism Economics, , vol. 29(3), pages 788-811, May.
    6. Bahta, Sirak & Baker, Derek, 2015. "Determinants of Profit Efficiency Among Smallholder Beef Producers in Botswana," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(3), pages 1-24, September.
    7. Antonio Alvarez & Rafael Garduño-Rivera & Hector M. Nuñez, 2017. "Mexico's North-South divide: The regional distribution of state inefficiency 1988–2008," Papers in Regional Science, Wiley Blackwell, vol. 96(4), pages 843-858, November.
    8. Alvarez, Antonio & Couce, Lorena & Trujillo, Lourdes, 2019. "Does Specialization Affect the Efficiency of Small-Scale Fishing Boats?," Efficiency Series Papers 2019/03, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    9. Samuel Faria & Sofia Gouveia & João Rebelo, 2022. "Transient and persistent efficiency: an application to Portuguese wineries," Economics and Business Letters, Oviedo University Press, vol. 11(1), pages 16-23.

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