Semiparametric smooth-coefficient stoachastic frontier model


This paper proposes a semiparametric smooth-coefficient stochastic production frontier model where all the coefficients are expressed as some unknown functions of environmental factors. The inefficiency term is multiplicatively decomposed into a scaling function of the environmental factors and a standard truncated normal random variable. A testing procedure is suggested for the relevance of the environmental factors. Monte Carlo study shows plausible ¯nite sample behavior of our proposed estimation and inference procedure. An empirical example is given, where both the semiparametric and standard parametric models are estimated and results are compared.

Divisions: College of Business and Social Sciences > Aston Business School > Economics, Finance & Entrepreneurship
College of Business and Social Sciences > Aston Business School
Event Title: Congrès AFSE 2012
Event Type: Other
Event Dates: 2012-07-02 - 2012-10-04
Uncontrolled Keywords: semiparametric smooth-coe±cient model,stochastic frontier model,environmental factors
Full Text Link: http://www.tout ... r/viewFile/72/9
Related URLs:
PURE Output Type: Paper
Published Date: 2012
Authors: Sun, Kai
Kumbhakar, Subal



Version: Accepted Version

Export / Share Citation


Additional statistics for this record