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Model Selection in Stochastic Frontier Analysis: Maize Production in Kenya

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  • Liu, Yanyan

Abstract

We demonstrate how a recently developed model selection procedure can be used to choose among competing stochastic frontier models where inefficiency depends on firm characteristics. We provide evidence on the power of this procedure. Moreover, we examine the effects of model choice on estimation results. We find that different models can lead to rather different magnitudes of the partial effects of the exogenous factors. However, because the model selection procedure gives an unambiguous choice of best model, and because bootstrapping indicates that the procedure is reliable, we conclude that it does not matter whether other models give different results.

Suggested Citation

  • Liu, Yanyan, 2006. "Model Selection in Stochastic Frontier Analysis: Maize Production in Kenya," 2006 Annual meeting, July 23-26, Long Beach, CA 21281, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea06:21281
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    1. repec:kap:iaecre:v:14:y:2008:i:1:p:76-89 is not listed on IDEAS
    2. Tiziana Laureti, 2008. "Modelling Exogenous Variables in Human Capital Formation through a Heteroscedastic Stochastic Frontier," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 14(1), pages 76-89, February.

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