When analysing the efficiency of decision-making units, robustness scores to changes in data is desirable, especially context managerial or regulatory benchmarking. However, maximum likelihood estimation stochastic frontier models remains underexplored. We examine behaviour influence function estimator a context, and derive some sufficient conditions for robust terms properties marginal distrib...

This paper examines the robustness of efficiency score rankings across four distributional assumptions for trans-log stochastic production-frontier models, using data from 1,221 Japanese water utilities (for 2004 and 2005). One-sided error terms considered include the half-normal, truncated normal, exponential, and gamma distributions. Results are compared for homoscedastic and doubly heterosce...

China’s banking system has a relatively high level of state control, while an important task in regulating the is to manage profitability banks. Using stochastic frontier approach assess commercial banks not only allows for bank’s ability generate profits relative leading industry be assessed but also takes into account specifics management technologies used and influence market environment. Th...

The present paper seeks to deal with the issue of technical and economic efficiency of rice producers in the Kou valley, located in the region of the high basins in the western part of Burkina Faso. The stochastic frontier approach was used to estimate the production function, from a CobbDouglas stochastic frontier function and its dual which allow the estimation of the technical, allocative an...

The aim of this paper is to use the concept of the metafrontier function to study the determination of efficiency differentials and Technological Gap Ratio (TGR) on wheat production in Khorasan Razavi province. In this study, we used the metafrontier function and group frontier based on the concept of Stochastic Nonparametric Envelopment of Data analysis (StoNED). The data used in this stud...

Data envelopment analysis (DEA) is widely used as a benchmarking tool for improving productive performance of decision making units (DMUs). The benchmarks produced by DEA are obtained as a sideproduct of computing efficiency scores. As a result, the benchmark units may differ from the evaluated DMU in terms of their input–output profiles and the scale size. Moreover, the DEA benchmarks may oper...

The results of Waldman (1982) on the Normal-Half Normal stochastic frontier model are generalized using the theory of the Dirac delta (Dirac, 1930), and distribution-free conditions are established to ensure a stationary point in the likelihood as the variance of the inefficiency distribution goes to zero. Stability of the stationary point and "wrong skew" results are derived or simulated for c...