Further results on estimating inefficiency effects in stochastic frontier models

Tsionas, Mike G and Mamatzakis, Emmanuel (2019) Further results on estimating inefficiency effects in stochastic frontier models. European Journal of Operational Research, 275 (3). pp. 1157-1164. ISSN 0377-2217

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Paul and Shankar [Satya Paul, Sriram Shankar, On Estimating Efficiency Effects in a Stochastic Fron- tier Model, European Journal of Operational Research (2018)] proposed an inefficiency effects stochas- tic 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 un- der 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
Schools and Departments: University of Sussex Business School > Accounting and Finance
Subjects: H Social Sciences > HA Statistics > HA029 Theory and method of social science statistics
H Social Sciences > HG Finance
H Social Sciences > HG Finance > HG1501 Banking
Depositing User: Emmanuel Mamatzakis
Date Deposited: 28 Jan 2019 11:46
Last Modified: 04 Nov 2019 10:12
URI: http://sro.sussex.ac.uk/id/eprint/81475

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