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Fixed Effects and Stochastic Frontier Estimates of Firm-Level Technical Efficiency

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  • Bravo-Ureta, Boris E.
  • Rieger, Laszlo
  • Quiroga, Ricardo E.

Abstract

Parameter estimates from OLS, fixed effects and stochastic production frontier models are compared using panel data for a sample of Vermont dairy farms. The results confirm that OLS production function models without firm effects lead to biased estimates. The estimates from the production frontier model area also deemed to be biased.

Suggested Citation

  • Bravo-Ureta, Boris E. & Rieger, Laszlo & Quiroga, Ricardo E., 1990. "Fixed Effects and Stochastic Frontier Estimates of Firm-Level Technical Efficiency," 1990 Annual meeting, August 5-8, Vancouver, Canada 270867, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea90:270867
    DOI: 10.22004/ag.econ.270867
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    References listed on IDEAS

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