Semiparametric smooth-coefficient stochastic frontier model

Sun, K and Kumbhakar, SC 2013, 'Semiparametric smooth-coefficient stochastic frontier model' , Economics Letters, 120 (2) , pp. 305-309.

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This paper proposes a semiparametric smooth-coefficient (SPSC) stochastic production frontier model where regression coefficients are unknown smooth functions of environmental factors (Z). Technical inefficiency is specified in the form of a parametric scaling function which also depends on the Z variables. Thus, in our SPSC model the Z variables affect productivity directly via the technology parameters as well as through inefficiency. A residual-based bootstrap test of the relevance of the environmental factors in the SPSC model is suggested. An empirical application is also used to illustrate the technique.

Item Type: Article
Schools: Schools > Salford Business School > Salford Business School 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 17:38
Last Modified: 16 Feb 2022 16:30

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