Group and individual heterogeneity in a stochastic frontier model: Container terminal operators

Group and individual heterogeneity in a stochastic frontier model: Container terminal operators

Container ports are a major component of international trade and the global supply chain. Hence, the improvement of port efficiency can have a significant impact on the wider maritime economy. This paper deconstructs a representation in the existing literature that neglects the heterogeneity of individual and group-specific terminal operators. In its place, we present a hierarchical model to ma...

A Laplace Stochastic Frontier Model

We propose a Laplace stochastic frontier model as an alternative to the traditional model with normal errors. An interesting feature of the Laplace model is that the distribution of inefficiency conditional on the composed error is constant for positive values of the composed error, but varies for negative values. Therefore, it may be ideally suited for analyzing industries with many forms on o...

Reconsidering heterogeneity in panel data estimators of the stochastic frontier model

This paper examines several extensions of the stochastic frontier that account for unmeasured heterogeneity as well as firm inefficiency. The fixed effects model is extended to the stochastic frontier model using results that specifically employ its nonlinear specification. Based on Monte Carlo results, we find that the incidental parameters problem operates on the coefficient estimates in the ...

The optimal number of yard cranes in container terminal

The aim of this study is to propose a new mixed integer linear programming (MILP) model to find the minimum required number of yard cranes, Rubber tyred gantry cranes (RTGCs), for completion the total amount of works at the end of planning horizon. In other word, we find the optimal number of yard cranes in a container terminal which completes the total amount of works. The paper supports the p...

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