Statistical Inference in a Spatial-Temporal Stochastic Frontier Model
Methodology
2021-04-29 v1
Abstract
The stochastic frontier model with heterogeneous technical efficiency explained by exoge-nous variables is augmented with a spatial-temporal component, a generalization relaxing the panel independence assumption in a panel data. The estimation procedure takes advantage of additivity in the model, computational advantages over maximum likelihood estimation of parameters is exhibited. The spatial-temporal component can improve estimates of technical efficiency in a production frontier that is usually biased downwards. We present a test to veri-fy model assumptions that facilitates estimation of parameters.
Cite
@article{arxiv.2104.13524,
title = {Statistical Inference in a Spatial-Temporal Stochastic Frontier Model},
author = {Erniel B. Barrios and John D. Eustaquio and Rouselle F. Lavado},
journal= {arXiv preprint arXiv:2104.13524},
year = {2021}
}
Comments
Earlier version of the paper first appeared as Discussion Paper No. 2010-08 in Philippine Institute for Devel-opment Studies