Munich Personal RePEc Archive

Estimating Efficiency Effects in a Panel Data Stochastic Frontier Model

Paul, Satya and Shankar, Sriram (2018): Estimating Efficiency Effects in a Panel Data Stochastic Frontier Model.

This is the latest version of this item.

[img]
Preview
PDF
MPRA_paper_89236.pdf

Download (474kB) | Preview

Abstract

This paper proposes a stochastic frontier model which includes time-invariant unobserved heterogeneity along with the efficiency effects. The efficiency effects are specified by a standard normal cumulative distribution function of exogenous variables which ensures the efficiency scores to lie in a unit interval. The model parameters are consistently estimated by non-linear least squares after removing the individual effects by the usual within transformation. The efficiency scores are directly calculated once the model is estimated. An empirical illustration based on widely used panel data on Indian farmers is presented.

Available Versions of this Item

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.