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...

INTRODUCTION Hospitals are the most expensive health services provider in the world. Therefore, the evaluation of their performance can be used to reduce costs. The aim of this study was to determine the efficiency of the hospitals at the Kurdistan University of Medical Sciences using stochastic frontier analysis (SFA). METHODS This was a cross-sectional and retrospective study that assessed ...

This article considers a multi-period weighted mean-variance portfolio selection problem with uncertain time-horizon and stochastic cash flow in Markov regime-switching market. The random returns of risky assets amount the all depend on states market which are assumed to follow discrete-time chain. Based conditional distribution caused by exogenous factors, we construct more general investment ...

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...

This paper explores the role of unobserved managerial ability in production and its relationship with technical efficiency. Previous analyses of managerial ability have been based on strong assumptions about its role in production or on the use of proxies. We avoid these limitations by introducing managerial ability as an unobserved random variable in a translog production function. The resulti...

This paper simultaneously explores the determinants of the developing countries’ production frontier and their ‘efficiency’ in using the available resources and technology. In doing so it allows for the transfer of (industrial country) technology in determining the frontier and for international trade to influence absorptive capacity and national efficiency levels. Stochastic frontier analysis ...

existence of capacity drop phenomenon, as the difference between pre-queue and queue discharge flow rates, has been one of the controversial concepts of traffic engineering. several researches have focused on capacity drop existence and also its estimation issues. this paper aims to estimate capacity drop based not only on a comparison between breakdown and queue discharge flow rates, but also ...