On the estimation of zero-inefficiency stochastic frontier models with endogenous regressors

Tran, Kien C. and Tsionas, Efthymios (2016) On the estimation of zero-inefficiency stochastic frontier models with endogenous regressors. Economics Letters, 147. pp. 19-22. ISSN 0165-1765

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Official URL: https://doi.org/10.1016/j.econlet.2016.08.014

Abstract

In this paper, we investigate endogeneity issues in the zero-inefficiency stochastic frontier (ZISF) models by mean of simultaneous equation setting. Specifically, we allow for one or more regressors to be correlated with the statistical noise. A modified limited information maximum likelihood (LIML) approach is used to estimate the parameters of the model. Moreover, the firm specific inefficiency score is also provided. Limited Monte Carlo simulations show that the proposed estimators perform well in finite sample.

Item Type:

Journal Article

Journal or Publication Title:

Economics Letters

Additional Information:

This is the author’s version of a work that was accepted for publication in Economics Letters. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Economics Letters, 147, 2016 DOI: 10.1016/j.econlet.2016.08.014

Uncontrolled Keywords:

/dk/atira/pure/subjectarea/asjc/2000/2002

Subjects:

Departments:

Lancaster University Management School > Economics

ID Code:

82157

Deposited By:

ep_importer_pure

Deposited On:

14 Oct 2016 12:24

Refereed?:

Yes

Published?:

Published

Last Modified:

22 Nov 2022 03:52

URI:

https://eprints.lancs.ac.uk/id/eprint/82157