The paper presents a metafrontier production function model for farm’s different groups having different technologies. The metafrontier model enables the computation of comparable technical efficiencies for farms operating under different technologies. The model also enables the technology gaps to be estimated for wheat farms under different technologies relative to the potential technology ava...

A stochastic distance function frontier was estimated using data from a national survey of organic farmers to evaluate the effect of farm-specific attributes on efficiency. Farm-specific and regional variables that shift efficiency were incorporated into the multioutput distance function, including organic farming experience, use of soil-improving inputs, and farmer involvement in research. Par...

Despite remaining the most important type of animal production, pig production in Poland and Hungary declined after their accession to European Union (EU) 2004. This paper investigated evolution technical efficiency pork industry both countries. We applied stochastic frontier analysis, which takes into account heterogeneity environment functions countries—true random effects, a metafrontier mod...

We examine the cost structure of public schools in this paper, using frontier cost models that enable us to estimate sources of inefficiency. A two equation stochastic frontier model is presented that can be used to explain both cost and the sources of inefficiency. Using that model and data for public schools in Nebraska over the period 1989-92, we estimate cost frontiers for the districts. Es...

This paper presents a methodology for estimating an index of technological change using firm-level data in a stochastic frontier production function model that takes into account time-varying technical inefficiency. In contrast to the Solow divisia index approach, econometric estimation of the index with panel data allows the researcher to separate technical progress from the stochastic measure...

In this paper, we formulate a mean-variance portfolio selection model with liability under the constraint that short-selling is prohibited. Due to the introduction of the liability and no-shorting constraints, our problem is not a conventional stochastic optimal linear-quadratic(LQ) control problem, and the corresponding HJB equation has no continuous solution. we construct a lower-semicontinuo...

This article has investigated the asymptotic distribution of the maximum likelihood estimator in a stochastic frontier function when the firms are all technically efficient. For such a situation, the true parameter vector is on the boundary of the parameter space, and the scores are linearly dependent. The maximum likelihood estimator is shown to be a mixture of certain truncated distributions....

This study investigated various factors explaining the technical, allocative and cost efficiency of Finnish hospitals using parametric frontier models and nonparametric DEA models. DEA scores were correlated to the same set of variables as efficiency scores by stochastic frontier models. Specialization, specialization in expensive DRGs, sufficiently high proportion of resident physicians and in...

Hansen and Jagannathan (HJ, 1991) provided bounds on the volatility of Stochastic Discount Factors (SDF) that proved extremely useful to diagnose and test asset pricing models. This nonparametric bound reflects a duality between the meanstandard deviation frontier for SDFs and the mean-variance frontier for portfolios of asset returns. We extend this fundamental contribution by proposing inform...