Semiparametric smooth-coefficient stoachastic frontier model

Kai Sun, Subal Kumbhakar

Research output: Contribution to conferencePaper

Abstract

This paper proposes a semiparametric smooth-coefficient stochastic production frontier model where all the coefficients are expressed as some unknown functions of environmental factors. The inefficiency term is multiplicatively decomposed into a scaling function of the environmental factors and a standard truncated normal random variable. A testing procedure is suggested for the relevance of the environmental factors. Monte Carlo study shows plausible ¯nite sample behavior of our proposed estimation and inference procedure. An empirical example is given, where both the semiparametric and standard parametric models are estimated and results are compared.
Original languageEnglish
Number of pages17
Publication statusPublished - 2012
EventCongrès AFSE 2012 - Paris, France
Duration: 2 Jul 20124 Oct 2012

Conference

ConferenceCongrès AFSE 2012
CountryFrance
CityParis
Period2/07/124/10/12

Keywords

  • semiparametric smooth-coe±cient model
  • stochastic frontier model
  • environmental factors

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