A note on functional form specification in random coefficients stochastic frontier models

A Note on Estimated Coefficients in Random Effects Probit Models

This note points out to applied researchers what adjustments are needed to the coefficient estimates in a random effects probit model in order to make valid comparisons in terms of coefficient estimates and marginal effects across different specifications. These adjustments are necessary because of the normalisation that is used by standard software in order to facilitate easy estimation of the...

Stochastic Frontier Models

Endogeneity in Stochastic Frontier Models

Stochastic frontier models are typically estimated by maximum likelihood (MLE) orcorrected ordinary least squares. The consistency of either estimator depends on exogeneity of the explanatory variables (inputs, in the production frontier setting). We will investigate the case that one or more of the inputs is endogenous, in the simultaneous equation sense of endogeneity. That is, we worry that ...

Specification of Functional Form in Models of Population Migration

A characteristic of the empirical literature on internal population migration is widely varying results and often conflicting conclusions regarding relative importance of explanatory factors. There are a number of possible explanations for these conflicting findings, some of which have received little attention in the literature. This paper focuses on one major specification issue in the contex...

A note on stochastic elliptic models

There exist two types of commonly studied stochastic elliptic models in literature: (I) r (a(x,x)r u(x,x)) = f(x) and (II) r ðaðx; xÞ}ruðx;xÞÞ 1⁄4 f ðxÞ, where x indicates randomness, } the Wick product, and a(x,x) is a positive random process. Model (I) is widely used in engineering and physical applications while model (II) is usually studied from the mathematical point of view. The differenc...