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Technological Inefficiency and the Skewness of the Error Component in Stochastic Frontier Analysis

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  • Martin A. Carree

    (Department of General Economics, Faculty of Economics, Erasmus University Rotterdam, Tinbergen Institute, and Maastricht University)

Abstract

This paper concentrates on negatively skewed one-sided distributions as an explanation ofthe occurence of positive (negative) skewness in the case of stochastic production (cost) frontieranalysis. It takes as example the binomial distribution that can have negative or positive skewand derives the method-of-moments estimators.

Suggested Citation

  • Martin A. Carree, 2002. "Technological Inefficiency and the Skewness of the Error Component in Stochastic Frontier Analysis," Tinbergen Institute Discussion Papers 02-012/2, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20020012
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    References listed on IDEAS

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    1. Mester, Loretta J., 1997. "Measuring efficiency at U.S. banks: Accounting for heterogeneity is important," European Journal of Operational Research, Elsevier, vol. 98(2), pages 230-242, April.
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