Modelling Efficiency Effects in a True Fixed Effects Stochastic Frontier

Consistent Estimation of the Fixed Effects Stochastic Frontier Model

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

Stochastic Nonparametric Envelopment of Panel Data: Frontier Estimation with Fixed and Random Effects Approaches

Stochastic nonparametric envelopment of data (StoNED) combines the virtues of data envelopment analysis (DEA) and stochastic frontier analysis (SFA) into a unified framework of frontier estimation. StoNED melds the nonparametric piece-wise linear DEA-type frontier with stochastic SFA-type inefficiency and noise terms. We show that the StoNED model can be estimated in the panel data setting in a...

Estimation of Stochastic Frontier Models with Fixed Effects through Monte Carlo Maximum Likelihood

Estimation of nonlinear fixed-effects models is plagued by the incidental parameters problem. This paper proposes a procedure for choosing appropriate densities for integrating the incidental parameters from the likelihood function in a general context. The densities are based on priors that are updated using information from the data and are robust to possible correlation of the group-specific...

Efficiency Measurement with the Weibull Stochastic Frontier*

In this paper we consider the Weibull distribution as a model for technical efficiency. The distribution has a shape and scale parameter like the gamma distribution and can be a reasonable competitor in practice. The techniques are illustrated using artificial data as well as a panel of Spanish dairy farms.