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Social and Behavioral Sciences Commons

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University of Texas Rio Grande Valley

Series

2018

Stochastic frontier

Articles 1 - 2 of 2

Full-Text Articles in Social and Behavioral Sciences

Estimating Efficiency In A Spatial Autoregressive Stochastic Frontier Model, Levent Kutlu Feb 2018

Estimating Efficiency In A Spatial Autoregressive Stochastic Frontier Model, Levent Kutlu

Economics and Finance Faculty Publications and Presentations

The spatial autoregressive stochastic frontier model of Glass et al.(2016) is based on distributional assumptions on two-sided and one-sided error terms. After estimating the model parameters, the efficiency estimates need to be corrected due to the presence of spatial autoregressive term in their model. Glass et al.(2016) estimate the corrected efficiencies by employing ideas from a distribution-free method on the efficiency estimation, which may be sensitive to outliers. We propose an alternative way to correct efficiency estimates that is in line with the distribution-based methods.


A Distribution-Free Stochastic Frontier Model With Endogenous Regressors, Levent Kutlu Feb 2018

A Distribution-Free Stochastic Frontier Model With Endogenous Regressors, Levent Kutlu

Economics and Finance Faculty Publications and Presentations

We provide a guideline for estimating a distribution-free panel data stochastic frontier model in the presence of endogenous variables. In particular, we consider variations of the within estimator of Cornwell et al. (1990) to allow endogenous regressors.