Estimating efficiency in a spatial autoregressive stochastic frontier model

Measuring Technical Efficiency in the Stochastic Varying Coefficient Frontier Model

Due to the assumption that the best practice methods refer to each input separately instead of the whole set of inputs used by a firm, the benchmark technology as defined in the stochastic varying coefficient frontier model may be infeasible and theoretically improper whenever the maximum response coefficients are not coming from the same production unit. To overcome this problem we suggest an ...

Properties of Technical Efficiency Estimators in the Stochastic Frontier Model

The estimation of frontier cost and production functions has been given impetus by the introduction of the stochastic frontier.’ This model is distinguished by a disturbance term composed of two parts a one-sided component, non-positive for production functions and non-negative for cost functions, representing the degree of inefficiency, and a symmetric component representing the usual statisti...

Comparison of the Sampling Efficiency in Spatial Autoregressive Model

A random walk Metropolis-Hastings algorithm has been widely used in sampling the parameter of spatial interaction in spatial autoregressive model from a Bayesian point of view. In addition, as an alternative approach, the griddy Gibbs sampler is proposed by [1] and utilized by [2]. This paper proposes an acceptance-rejection Metropolis-Hastings algorithm as a third approach, and compares these ...

Spatial-temporal Stochastic Frontier Models

The stochastic frontier model with heterogeneous technical efficiency explained by exogenous variables is augmented with a sparse spatial autoregressive component for a crosssection data, and a spatial-temporal component for a panel data. An estimation procedure that takes advantage of the additivity of the model is proposed, computational advantages over simultaneous maximum likelihood estimat...

Comparative Analysis of Stochastic Frontier Partially non-parametric and Stochastic Frontier Parametric Methods Case Study: Measuring Cost Efficiency in Wheat Production in Iran