Modelling multi-output stochastic frontiers using copulas

Modelling multi-output stochastic frontiers using copulas

The aim of this work is to introduce a new econometric methodology for multioutput production frontiers. In the context of a system of frontier equations, we use a flexible multivariate distribution for the inefficiency error term. This multivariate distribution is constructed through a copula function which allows for separate modelling of the marginal inefficiency distributions and the depend...

Multi-output Technical Efficiency for Argentinean Dairy Farms Using Stochastic Production and Stochastic Distance Frontiers with Unbalanced Panel Data

1 Assistant Professor, Dept. of Ag. Economics, Universidad Austral de Chile (UACh), Valdivia, Chile. 2 Boris E. Bravo-Ureta, Executive Director, Office of International Affairs and Professor of Ag. & Resource Economics, University of Connecticut, Storrs, CT, USA. 3 Amilcar Arzubi, Professor of Farm Management, Universidad de Lomas de Zamora, Buenos Aires, Argentina. 4 Ernesto Schilder, Economis...

Modelling Sample Selection Using Copulas

By a theorem due to Sklar, a multivariate distribution can be represented in terms of its underlying margins by binding them together using a copula function. By exploiting this representation, the “copula approach” to modelling proceeds by specifying distributions for each margin, and a copula function. In this article, a number of copula functions are given, with attention focusing on members...

estimating multi-output technical efficiency for the dairy farms of the northern khorasan province (applying stochastic production and stochastic distance frontiers)

population growth and the needs for protein and dairy products has urged policy makers to pay attention to efficiency policies in the livestock sector. the objective of this study is to survey the factors affecting the income of milk production, to calculate cattlemen’s technical efficiency and to determine the factors affecting the technical efficiency in the northern khorasan province. the re...

Modelling Copulas: An Overview