Pavlyuk, Dmitry (2012): Maximum Likelihood Estimator for Spatial Stochastic Frontier Models. Published in: Proceedings of the 12th International Conference “Reliability and Statistics in Transportation and Communication” (2012): pp. 11-19.
![Warning](/style/images/warning.png)
Preview |
PDF
MPRA_paper_43390.pdf Download (132kB) | Preview |
Abstract
This research is devoted to analysis of efficiency estimation in presence of spatial relationships and spatial heterogeneity in data. We presented a general specification of the spatial stochastic frontier model, which includes spatial lags, spatial autoregressive disturbances and spatial autoregressive inefficiencies. Maximum likelihood estimators are derived for two special cases of the spatial stochastic frontier. Small-sample properties of these estimators and comparison with a standard non-spatial estimator were implemented using a set of Monte Carlo experiments. Finally, we tested our estimators on a real-world data set of European airports and discovered significant spatial components in data.
Item Type: | MPRA Paper |
---|---|
Original Title: | Maximum Likelihood Estimator for Spatial Stochastic Frontier Models |
Language: | English |
Keywords: | spatial stochastic frontier, maximum likelihood, efficiency, heterogeneity |
Subjects: | C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C51 - Model Construction and Estimation L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L93 - Air Transportation C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C15 - Statistical Simulation Methods: General C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C31 - Cross-Sectional Models ; Spatial Models ; Treatment Effect Models ; Quantile Regressions ; Social Interaction Models |
Item ID: | 43390 |
Depositing User: | Dmitry Pavlyuk |
Date Deposited: | 23 Dec 2012 13:30 |
Last Modified: | 27 Sep 2019 12:36 |
References: | Krugman, P.R., Fujita, M., Venables, A. (2001). The spatial economy: cities, regions and international trade. Cambridge, Mass.: MIT Press, 384 p. Anselin, L. (2010). Thirty years of spatial econometrics, Papers in Regional Science, Vol. 89, No 1, pp. 3–25. Kumbhakar, S.C., Lovell, C.A.K. (2003). Stochastic frontier analysis. Cambridge: Cambridge Univ. Press, 344 p. Adler, N., Liebert, V. (2011). Competition and regulation (when lacking the former) outrank ownership form in generating airport efficiency, presented at the GAP workshop “Benchmarking of Airports,” Berlin, Germany, p. 27. Scotti, D. (2011). Measuring Airports’ Technical Efficiency: Evidence from Italy, PhD thesis, University of Bergamo, Italy. Pavlyuk, D. (2012). Airport Benchmarking and Spatial Competition: A Critical Review, Transport and Telecommunication, Vol. 13, No 2, pp. 123–137. LeSage, J.P. (1999). Spatial econometrics. Regional Research Institute, West Virginia University, 296 p. Anselin, L. (1988). Spatial econometrics: methods and models. Dordrecht: Kluwer Academic Publishing, 304 p. Kelejian, H.H., Prucha, I.R. (1998). A generalized spatial two-stage least squares procedure for estimating a spatial autoregressive model with autoregressive disturbances, The Journal of Real Estate Finance and Economics, Vol. 17, No 1, pp. 99–121. Druska, V., Horrace, W.C. (2004). Generalized moments estimation for spatial panel data: Indonesian rice farming, American Journal of Agricultural Economics, Vol. 86, No 1, pp. 185–198. Lee, L. (2007). GMM and 2SLS estimation of mixed regressive, spatial autoregressive models, Journal of Econometrics, Vol. 137, No 2, pp. 489–514. Aigner, D., Lovell, C., Schmidt, P. (1977). Formulation and estimation of stochastic frontier production function models, Journal of econometrics, Vol. 6, No 1, pp. 21–37. Stevenson, R. (1980). Likelihood Functions for Generalized Stochastic Frontier Functions, Journal of Econometrics, No 13, pp. 57–66. Greene, W.H. (1990). A gamma-distributed stochastic frontier model, Journal of econometrics, Vol. 46, No 1–2, pp. 141–163. Lin, J., Long, Z., Lin, K. (2010). Spatial Panel Stochastic Frontier Model and Technical Efficiency Estimation, Journal of Business Economics, Vol. 223, No 5, pp. 71–78. Oum, T.H., Yu, C., Choo, Y. (2011). ATRS Global Airport Performance Benchmarking Project, The Air Transport Research Society. The Use of Benchmarking in the Airport Reviews (2000). Civil Aviation Authority, London, UK. Doganis, R. (1992). The airport business. London: Routledge, 240 p. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/43390 |
Available Versions of this Item
- Maximum Likelihood Estimator for Spatial Stochastic Frontier Models. (deposited 23 Dec 2012 13:30) [Currently Displayed]