Stochastic Frontiers: A Semiparametric Approach
This paper generalizes the results of Hausman and Taylor (1981), Schmidt and Sickles (1984), Cornwell, Schmidt and Sickles (1990) and Park and Simar (1992) to the efficient IV estimation of panel models in which the random effects are correlated with a subset of the regressors. The model in which this estimator has particular promise is the stochastic frontier model in which it is posited that inefficiency is correlated with certain characteristics of the determinants of technology, or observable proxies for heterogeneity in the application of that technology, which renders the random components treatment of ethciency inconsistent. In the spirit of Robinson (1988) our semi parametric model assumes It particular form for the frontier production function while considering the joint density of the individual firm-specific effects and those regressors with which they are potentially correlated as unknown. Efficiency of the slope parameters and the asymptotic properties of the level of the frontier function are explored. We illustrate our new estimator in an analysis of productive efficieney between selected European and American airlines after domestic deregulation in the U.S. and prior to recent European reforms implemented ill the course of EC integration.
(This abstract was borrowed from another version of this item.)
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||1993|
|Contact details of provider:|| Postal: Universite Catholique de Louvain, Institut de Statistique, Voie du Roman Pays, 34 B-1348 Louvain- La-Neuve, Belgique.|
When requesting a correction, please mention this item's handle: RePEc:fth:louvis:9303. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Krichel)
If references are entirely missing, you can add them using this form.