Estimating fixed-effect panel stochastic frontier models by model transformation

Alternative Panel Data Estimators for Stochastic Frontier Models

Received analyses based on stochastic frontier modeling with panel data have relied primarily on results from traditional linear fixed and random effects models. This paper examines several extensions of these models that employ nonlinear techniques. The fixed effects model is extended to the stochastic frontier model using results that specifically employ the nonlinear specification. Based on ...

Estimating Production Uncertainty in Stochastic Frontier Production Function Models

One of the main purposes of the frontier literature is to estimate inefficiency. Given this objective, it is unfortunate that the issue of estimating “firm-specific” inefficiency in cross sectional context has not received much attention. To estimate firm-specific (technical) inefficiency, the standard procedure is to use the mean of the inefficiency term conditional on the entire composed erro...

Consistent Estimation of the Fixed Effects Stochastic Frontier Model

Stochastic Frontier Models

Stochastic Nonparametric Envelopment of Panel Data: Frontier Estimation with Fixed and Random Effects Approaches

Stochastic nonparametric envelopment of data (StoNED) combines the virtues of data envelopment analysis (DEA) and stochastic frontier analysis (SFA) into a unified framework of frontier estimation. StoNED melds the nonparametric piece-wise linear DEA-type frontier with stochastic SFA-type inefficiency and noise terms. We show that the StoNED model can be estimated in the panel data setting in a...