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Dynamic Technical Efficiency

In: Productivity and Efficiency Analysis

Author

Listed:
  • Lynda Khalaf

    (Carleton University)

  • Charles J. Saunders

    (Carleton University)

Abstract

Dynamic panels with non-Gaussian errors suffer from the incidental parameter bias. Simulations show that an indirect inference estimation approach provides bias correction for the model and distribution parameters. The indirect confidence set inference method is size correct and exhibits good coverage properties even for asymmetric confidence regions. Bank cost data are examined under the proposed dynamic technical efficiency framework with evidence that an MLE approach could provide misleading implications.

Suggested Citation

  • Lynda Khalaf & Charles J. Saunders, 2016. "Dynamic Technical Efficiency," Springer Proceedings in Business and Economics, in: William H. Greene & Lynda Khalaf & Robin Sickles & Michael Veall & Marcel-Cristian Voia (ed.), Productivity and Efficiency Analysis, edition 1, chapter 0, pages 99-107, Springer.
    • Handle: RePEc:spr:prbchp:978-3-319-23228-7_6
    DOI: 10.1007/978-3-319-23228-7_6
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    Cited by:

    1. Assaf, A. George & Tsionas, Mike G., 2019. "A review of research into performance modeling in tourism research - Launching the Annals of Tourism Research curated collection on performance modeling in tourism research," Annals of Tourism Research, Elsevier, vol. 76(C), pages 266-277.

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