A Stochastic Frontier Model with Structural Breaks in Efficiency and Technology
نویسنده
چکیده
We develop a stochastic frontier model with unknown locations and number of structural breaks for both efficiency and technology. The structural changes in technology and efficiency are different. It is possible to identify these two types of changes even under a short panel context. The algorithm to estimate the model is designed to avoid the potential pitfalls with panel data. Parallel computing is used to tackle the estimation obstacles. We demonstrate the viability of our method with artificial data and we also apply it to study the world production over the period between 1960 and 2007. JEL Classification Code: C11, C13, C15, C63, O0
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