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Count Data Stochastic Frontier Models, with an application to the patents-R&D Relationship

  • Eduardo Fé-Rodríguez
  • Richard Hofler

This article introduces a new count data stochastic frontier model that researchers can use in order to study efficiency in production when the output variable is a count (so that its conditional distribution is discrete). We discuss parametric and nonparametric estimation of the model, and a Monte Carlo study is presented in order to evaluate the merits and applicability of the new model in small samples. Finally, we use the methods discussed in this article to estimate a production function for the number of patents awarded to a firm given expenditure on R&D. Copyright Springer Science+Business Media, LLC 2013

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File URL: http://www.socialsciences.manchester.ac.uk/medialibrary/economics/discussionpapers/EDP-0916.pdf
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Paper provided by Economics, The University of Manchester in its series The School of Economics Discussion Paper Series with number 0916.

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Date of creation: 2009
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Handle: RePEc:man:sespap:0916
Contact details of provider: Postal: Manchester M13 9PL
Phone: (0)161 275 4868
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Web page: http://www.socialsciences.manchester.ac.uk/subjects/economics/

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