This paper estimates a stochastic production frontier using time-series data for the aggregate Korean economy in 1977-2005 to examine whether public infrastructure stock reduces aggregate technical inefficiency in the gross domestic product. A stochastic production frontier is estimated in first-differenced form, and the one-sided residuals are regressed against the stock of public infrastructu...

The paper is concerned with several kinds of stochastic frontier models whose likelihood function is not available in closed form. First, with output-oriented stochastic frontier models whose one-sided errors have a distribution other than the standard ones (exponential or half-normal). The gamma and beta distributions are leading examples. Second, with input-oriented stochastic frontier models...