This article studies tail behavior for the error components in stochastic frontier model, where one component has bounded support on side, and other unbounded both sides. Under weak assumptions components, we derive nonparametric tests thin-tailed distributional imposed these two components. The are useful diagnostic tools analysis kernel deconvolution density estimation. A simulation study app...

Abstract We propose a novel penalized splines method to estimate stochastic frontier model in which the is linear and inefficiency has single index structure with unknown link function index. The approach more flexible than traditional methodology requiring parametric and, at same time, it does not incur curse of dimensionality as fully non-parametric approach. procedure can be easily implement...

This paper adopts the stochastic frontier analysis (SFA) to model working capital efficiency (WCE) on a sample of 6170 European firms from 2009 2018. We find: (i) larger are more efficient with their management (WCM) than smaller firms, (ii) higher cash holding contributes WCE, (iii) high competition is less conducive WCE low competition, (iv) export and sales growth potential decrease (v) incr...