Estimation of a smooth coefficient zero-inefficiency panel stochastic frontier model: A semiparametric approach

Autor:	Taining Wang, Subal C. Kumbhakar, Jinjing Tian, Feng Yao
Rok vydání:	2018
Předmět:	Economics and Econometrics 05 social sciences Conditional probability Estimator Sample (statistics) Function (mathematics) Penn World Table Simple (abstract algebra) 0502 economics and business Applied mathematics 050207 economics Inefficiency Finance 050205 econometrics Mathematics Panel data
Zdroj:	Economics Letters. 166:25-30
ISSN:	0165-1765
DOI:	10.1016/j.econlet.2018.02.015
Popis:	In this paper we propose a zero-inefficiency stochastic frontier model with a simple semiparametric approach using panel data. We model the frontier with a smooth coefficient function and specify a nonzero conditional probability for firms being fully efficient to be a known function of environment variables. Following (Yao et al., 2017) we propose a three step semiparametric estimator which is computationally efficient. The simulation results reveal encouraging finite sample properties. We illustrate the applicability of our model using country level data from the Penn World Table.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::78c998b6844477147acfeffa736b294e https://doi.org/10.1016/j.econlet.2018.02.015 Zobrazit plný text záznamu Full Text from ScienceDirect