Handling losses in translog profit models
In this paper, we compare standard approaches used to handle losses in logarithmic stochastic profit frontier models with a simple novel approach. We discuss discriminatory power, rank stability and precision of profit eﬃciency scores. Our new method enhances rank stability and discriminatory power, and improves the precision of profit efficiency scores.
|Date of creation:||26 Sep 2006|
|Date of revision:|
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