BIROn - Birkbeck Institutional Research Online

    Further results on estimating inefficiency effects in stochastic frontier models

    Mamatzakis, Emmanuel and Tsionas, M.G. (2018) Further results on estimating inefficiency effects in stochastic frontier models. European Journal of Operational Research 275 (3), pp. 1157-1164. ISSN 0377-2217.

    EJOR_Oct_29_2018-1.pdf - Author's Accepted Manuscript
    Available under License Creative Commons Attribution Non-commercial No Derivatives.

    Download (556kB) | Preview


    Paul and Shankar [Satya Paul, Sriram Shankar, On Estimating Efficiency Effects in a Stochastic Frontier Model, European Journal of Operational Research (2018)] proposed an inefficiency effects stochastic frontier model which is easy to implement and avoids some of the difficulties of existing models. Unfortunately, the model has the restrictive feature that the ratio of the inefficiency effects of any two environmental variables remains fixed independently of the values of the variables. We modify the model so that this restriction can be avoided. Moreover, we provide a substantive extension of the model under quite general endogeneity assumptions. In turn, the model can be estimated using the Generalized Method of Moments technique allowing identification of efficiency estimates and inefficiency effects.


    Item Type: Article
    Keyword(s) / Subject(s): Decision Processes, Stochastic frontier, Technical efficiency, Artificial neural networks, Generalized Method of Moments
    School: Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School
    Research Centres and Institutes: Accounting and Finance Research Centre
    Depositing User: Emmanuel Mamatzakis
    Date Deposited: 07 Feb 2020 14:12
    Last Modified: 02 Aug 2023 17:57


    Activity Overview
    6 month trend
    6 month trend

    Additional statistics are available via IRStats2.

    Archive Staff Only (login required)

    Edit/View Item Edit/View Item