Fixed-Effect Estimation of Technical Efficiency with Time-Invariant Dummies
نویسندگان
چکیده
“Within” estimation of the fixed-effect stochastic frontier model does not identify parameters on time-invariant explanatory variables. If time-invariant variables are important production inputs, then standard efficiency estimates are biased. This note details bias correction, when time-invariant inputs are dummy variables. © 2006 Elsevier B.V. All rights reserved.
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