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Derivation of marginal effects of determinants of technical inefficiency

Kumbhakar, SC and Sun, K 2013, 'Derivation of marginal effects of determinants of technical inefficiency' , Economics Letters, 120 (2) , pp. 249-253.

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Abstract

In efficiency studies using the stochastic frontier approach, the main focus is to explain inefficiency in terms of some exogenous variables and computation of marginal effects of each of these determinants. Although inefficiency is estimated by its mean conditional on the composed error term (the Jondrow et al., 1982 estimator), the marginal effects are computed from the unconditional mean of inefficiency (Wang, 2002). In this paper we derive the marginal effects based on the Jondrow et al. estimator and use the bootstrap method to compute confidence intervals of the marginal effects.

Item Type: Article
Schools: Schools > Salford Business School > Business and Management Research Centre
Journal or Publication Title: Economics Letters
Publisher: Elsevier
Refereed: Yes
ISSN: 0165-1765
Related URLs:
Funders: Non funded research
Depositing User: Dr Kai Sun
Date Deposited: 29 May 2015 17:36
Last Modified: 29 Oct 2015 00:47
URI: http://usir.salford.ac.uk/id/eprint/34565

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