Stochastic Frontier Analysis and Efficiency Estimation

Advanced Studies in Theoretical and Applied Econometrics

Volumn 46, Issue , 2008, Pages 697-726

  Cornwell, Christopher ^a   Schmidt, Peter ^b  

^a UNIVERSITY OF GEORGIA   (United States)

^b MICHIGAN STATE UNIVERSITY   (United States)

Author keywords

Data Envelopment Analysis; Frontier Production; Ordinary Little Square; Panel Data; Stochastic Frontier

Indexed keywords

EID: 85064942343     PISSN: 15705811     EISSN: 22147977     Source Type: Book Series    
DOI: 10.1007/978-3-540-75892-1_21     Document Type: Chapter

References (80)

1. Ahn, S. C., Y. H. Lee and P. Schmidt (2001): GMM Estimation of Linear Panel Data Models with Time-Varying Individual Effects, Journal of Econometrics, 101, 219–256.
2. Aigner, D. J. and S. Chu (1968): On Estimating the Industry Production Function, American Economic Review, 58, 826–839.
3. Aigner, D. J., C. A. K. Lovell and P. Schmidt (1977): Formulation and Estimation of Stochastic Frontier Production Function Models, Journal of Econometrics, 6, 21–37.
4. Alvarez, A., C. Amsler, L. Orea and P. Schmidt (2004): Interpreting and Testing the Scaling Property in Models Where Inefficiency Depends on Firm Characteristics, unpublished manuscript.
5. Amemiya, T. and T. E. MaCurdy (1986): Instrumental Variable Estimation of an Error-Components Model, Econometrica, 54, 869–891.
6. Atkinson, S. E. and C. Cornwell (1994a): Estimating Output and Input Technical Efficiency Using a Flexible Functional Form and Panel Data, International Economic Review, 35, 245–256.
7. Atkinson, S. E. and C. Cornwell (1994b): Parametric Measurement of Technical and Allocative Inefficiency with Panel Data, International Economic Review, 35, 231–244.
8. Atkinson, S. E. and C. Cornwell and O. Honerkamp (2003): Measuring Productivity Change Using a Malmquist Index: Stochastic Distance Function Estimation vs DEA, Journal of Business and Economic Statistics, 21, 284–295.
9. Atkinson, S. E. and R. Halvorsen (1984): Parametric Efficiency Tests, Economies of Scale, and Input Demand in U.S. Electric Power Generation, International Economic Review, 25, 647–662.
10. Bai, J. (2003): Inferential Theory for Factor Models of Large Dimensions, Econometrica, 71, 135–172.
11. Battese, G. E. and T. J. Coelli (1988): Prediction of Firm-Level Technical Efficiencies with a Generalized Frontier Production Function and Panel Data, Journal of Econometrics, 38, 387–399.
12. Battese, G. E. and T. J. Coelli (1992): Frontier Production Functions, Technical Efficiency and Panel Data: With Applications to Paddy Farmers in India, Journal of Productivity Analysis, 3, 153–169.
13. Battese, G.E. and T. J. Coelli (1995): A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data, Empirical Economics, 20, 325–332.
14. Bauer, P. (1990): Recent Developments in the Econometric Estimation of Frontiers, Journal of Econometrics, 46, 39–56.
15. Breusch, T. S., G. E. Mizon and P. Schmidt (1989): Efficient Estimation Using Panel Data, Econometrica, 57, 695–700.
16. Caudill, S. B. and J. M. Ford (1993): Biases in Frontier Estimation Due to Heteroskedasticity, Economics Letters, 41, 17–20.
17. Caudill, S. B., J. M. Ford and D. M. Gropper (1995): Frontier Estimation and Firm-Specific Inefficiency Measures in the Presence of Heteroskedasticity, Journal of Business and Economic Statistics, 13, 105–111.
18. Coelli, T. J. (1996): A Guide to FRONTIER Version 4.1: A Computer Program for Stochastic Frontier Production and Cost Function Estimation, CEPA Working Paper 96/7, Department of Econometrics, University of New England, Armidale NSW Australia.
19. Ahn, S.C. and P. Schmidt (1995): Efficient Estimation of Models for Dynamic Panel Data, Journal of Econometrics, 68, 5–25.
20. Cooper, W., L. Seiford and J. Zhu (2004): Handbook on Data Envelopment Analysis, Boston: Kluwer Academic Publishers.
21. Cornwell, C., P. Schmidt and R. C. Sickles (1990): Production Frontiers with Time-Series Variation in Efficiency Levels, Journal of Econometrics, 46, 185–200.
22. Dunn, O. J. and F. J. Massey (1965): Estimation of Multiple Contrasts using t-distribution, Journal of the American Statistical Association, 60, 573–583.
23. Dunnett, C. W. (1955): A Multiple Comparison Procedure for Comparing Several Treatments with a Control, Journal of the American Statistical Association, 50, 1096–1121.
24. Dunnett, C. W. (1964): New Tables for Multiple Comparisons with a Control, Biometrics, 20, 482–491.
25. Edwards, D. G. and J. C. Hsu (1983): Multiple Comparisons with the Best Treatment, Journal of the American Statistical Association, 78, 965–971.
26. Ahn, S.C. and P. Schmidt (1995): Efficient Estimation of Models for Dynamic Panel Data, Journal of Econometrics, 68, 5–25.
27. Färe, R. and C. A. K. Lovell (1978): Measuring the Technical Efficiency of Production, Journal of Economic Theory, 19, 150–162.
28. Farrell, M. S. (1957): The Measurement of Productive Efficiency, Journal of the Royal Statistical Society, A, 120, 253–281.
29. Førsund, F., C. A. K. Lovell and P. Schmidt (1980): A Survey of Frontier Production Functions and of Their Relationship to Efficiency Measurement, Journal of Econometrics, 13, 5–25.
30. Greene, W. H. (1993): The Econometric Approach to Efficiency Analysis, in H. Fried, C. A. K. Lovell and S. Schmidt eds., The Measurement of Productive Efficiency, New York: Oxford University Press.
31. Hahn, G. J. and R. W. Hendrickson (1971): A Table of Percentage Points of the Distribution of the Largest Absolute Value of k Student t Variables and its Applications, Biometrika, 58, 323–332.
32. Hall, P., W. Härdle and L. Simar (1995): Iterated Bootstrap with Applications to Frontier Models, Journal of Productivity Analysis, 6, 63–76.
33. Han, C., L. Orea and P. Schmidt (2005): Estimation of a Panel Data Model with Parametric Temporal Variation in Individual Effects, Journal of Econometrics, 126, 241–267.
34. Hansen, L. (1982): Large Sample Properties of Generalized Method of Moments Estimators, Econometrica, 50, 1029–1054
35. Hausman, J. (1978): Specification Tests in Econometrics, Econometrica, 46, 1251–1271.
36. Hausman, J. and W. Taylor (1981): Panel Data and Unobservable Individual Effects, Econometrica, 49, 1377–1399.
37. Heshmati, A. and S. Kumbhakar (1994): Farm Heterogeneity and Technical Efficiency: Some Results from Swedish Dairy Farms, Journal of Productivity Analysis, 5, 45–61.
38. Hochberg, Y. and A. C. Tamhane (1987): Multiple Comparison Procedures, New York: Wiley.
39. Horrace, W. C. and P. Schmidt (1996): Confidence Statements for Efficiency Estimates from Stochastic Frontier Models, Journal of Productivity Analysis, 7, 257–282.
40. Horrace, W. C. and P. Schmidt (2000): Multiple Comparisons with the Best, with Economic Applications, Journal of Applied Econometrics, 15, 1–26.
41. Hsu, J. C. (1981): Simultaneous Confidence Intervals for All Distances from the Best, Annals of Statistics, 9, 1026–1034.
42. Hsu, J.C. (1984): Constrained Simultaneous Confidence Intervals for Multiple Comparisons with the Best, Annals of Statistics, 12, 1145–1150.
43. Huang, C. J. and J. T. Liu (1994): Estimation o f a Non-Neutral Stochastic Frontier Production Function, Journal of Productivity Analysis, 5, 171–180.
44. Jondrow, J., C. A. K. Lovell, I. Materov and P. Schmidt (1982): On the Estimation of Technical Inefficiency in the Stochastic Frontier Production Function Model, Journal of Econometrics, 19, 233–238.
45. Kiefer, N. M. (1980): A Time Series – Cross Section Model with Fixed Effects with an Intertemporal Factor Structure, unpublished manuscript, Cornell University.
46. Kim, Y. (1999): A Study in Estimation and Inference on Firm Efficiency, unpublished PhD dissertation, Department of Economics, Michigan State University.
47. Kim, Y. and P. Schmidt (2000): A Review and Empirical Comparison of Bayesian and Classical Approaches to Inference on Efficiency Levels in Stochastic Frontier Models, Journal of Productivity Analysis, 14, 91–118.
48. Koop, G., J. Osiewalski and M. Steel (1997): Bayesian Efficiency Analysis through Individual Effects: Hospital Cost Frontiers, Journal of Econometrics, 76, 77–106.
49. Kumbhakar, S. (1990): Production Frontiers, Panel Data, and Time-Varying Technical Inefficiency, Journal of Econometrics, 46, 201–212.
50. Kumbhakar, S. (1997): Modelling Allocative Efficiency in a Translog Cost Function and Cost Shares: An Exact Relationship, Journal of Econometrics, 76, 351–356.
51. Kumbhakar, S., S. Ghosh and J. T. McGuckin (1991): A Generalized Production Frontier Approach for Estimating Determinants of Inefficiency in U.S. Dairy Farms, Journal of Business and Economic Statistics, 9, 279–286.
52. Kumbhakar, S. and C. A. K. Lovell (2000): Stochastic Frontier Analysis, Cambridge: Cambridge University Press.
53. Lau, L. J. and P. A. Yotopoulos (1971): A Test for Relative Efficiency and an Application to Indian Agriculture, American Economic Review, 61, 94–109.
54. Lee, Y. H. (1991): Panel Data Models with Multiplicative Individual and Time Effects: Applications to Compensation and Frontier Production Functions, unpublished Ph. D. dissertation, Department of Economics, Michigan State University.
55. Lee, Y. H. and P. Schmidt (1993): A Production Frontier Model with Flexible Temporal Variation in Technical Efficiency, in H. Fried, C. A. K. Lovell and S. Schmidt eds., The Measurement of Productive Efficiency, New York: Oxford University Press.
56. Lovell, C. A. K. (1993): Production Frontiers and Productive Efficiency, in H. Fried, C. A. K. Lovell and S. Schmidt eds., The Measurement of Productive Efficiency, New York: Oxford University Press.
57. Lovell, C. A. K. and P. Schmidt (1988): A Comparison of Alternative Approaches to the Measurement of Productive Efficiency, in A. Dogramaci and R. Färe, eds., Applications of Modern Production Theory: Efficiency and Production, Boston: Kluwer Academic Publishers.
58. Lovell, C. A. K. and R. C. Sickles (1983): Testing Efficiency Hypotheses in Joint Production, Review of Economics and Statistics, 65, 51–58.
59. Meeusen, W. and J. van den Broeck (1977): Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error, International Economic Review, 18, 435–444.
60. Morrison, C., W. Johnston and G. Frengley (2000): Efficiency in New Zealand Sheep and Cattle Farming: The Impacts of Regulatory Reform, Review of Economics and Statistics, 82, 325–337.
61. Mundlak, Y. (1961): Empirical Production Function Free of Management Bias, Journal of Farm Economics, 43, 44–56.
62. Mundlak, Y. (1978): On the Pooling of Time-Series and Cross-Section Data, Econometrica, 46, 69–85.
63. Park, B. and L. Simar (1994): Efficient Semiparametric Estimation in a Stochastic Frontier Model, Journal of the American Statistical Association, 89, 929–936.
64. Pitt, M. and L. Lee (1981): The Measurement and Sources of Technical Inefficiency in the Indonesian Weaving Industry, Journal of Development Economics, 9, 43–64.
65. Reifschneider, D. and R. Stevenson (1991): Systematic Departures from the Frontier: A Framework for the Analysis of Firm Inefficiency, International Economic Review, 32, 715–723.
66. Schmidt, P. (1976): On the Statistical Estimation of Parametric Frontier Production Functions, Review of Economics and Statistics, 58, 238–239.
67. Schmidt, P. (1985–86): Frontier Production Functions, Econometric Reviews, 4, 289–328.
68. Schmidt, P. and T. F. Lin (1984): Simple Tests of Alternative Specifications in Stochastic Frontier Models, Journal of Econometrics, 24, 349–361.
69. Schmidt, P. and C. A. K. Lovell (1979): Estimating Technical and Allocative Inefficiency Relative to Stochastic Production and Cost Frontiers, Journal of Econometrics, 9, 343–366.
70. Schmidt, P. and R. C. Sickles (1984): Production Frontiers and Panel Data, Journal of Business and Economic Statistics, 2, 367–374.
71. Ahn, S.C. and P. Schmidt (1995): Efficient Estimation of Models for Dynamic Panel Data, Journal of Econometrics, 68, 5–25.
72. Seale, J. L. Jr. (1990): Estimating Stochastic Frontier Systems with Unbalanced Panel Data: The Case of Floor Tile Manufactories in Egypt, Journal of Applied Econometrics, 5, 59–74.
73. Simar, L. (1992): Estimating Efficiencies from Frontier Models with Panel Data: A Comparison of Parametric, Non-Parametric and Semi-Parametric Methods with Bootstrapping, Journal of Productivity Analysis, 3, 171–203.
74. Simar, L. and P. W. Wilson (2000): Statistical Inference in Nonparametric Frontier Models: The State of the Art, Journal of Productivity Analysis, 13, 49–78.
75. Toda, Y. (1976): Estimation of a Cost Function when Cost is not a Minimum: the Case of Soviet Manufacturing Industries, 1958–1971, Review of Economics and Statistics, 58, 259–268.
76. Wallace T. D. and A. Hussain (1969): The Use of Error Components Models in Combining Cross-Section and Time-Series Data, Econometrica, 37, 55–72.
77. Wooldridge, J. (2002): Econometric Analysis of Cross-Section and Panel Data, Cambridge: MIT Press.
78. Wang, H. J. (2002): Heteroskedasticity and Non-Monotonic Efficiency Effects in a Stochastic Frontier Model, Journal of Productivity Analysis, 18, 241–253.
79. Wang, H. J. and P. Schmidt (2002): One-Step and Two-Step Estimation of the Effects of Exogenous Variables on Technical Efficiency Levels, Journal of Productivity Analysis, 18, 129–144.
80. Zellner, A., J. Kmenta and J. Dreze (1966): Specification and Estimation of Cobb-Douglas Production Functions, Econometrica, 34, 784–795.