Derivation of marginal effects of determinants of technical inefficiency


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.

Publication DOI:
Divisions: College of Business and Social Sciences > Aston Business School > Economics, Finance & Entrepreneurship
College of Business and Social Sciences > Aston Business School
Additional Information: NOTICE: this is the author’s version of a work that was accepted for publication in Economics letters. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Kumbhakar, SC & Sun, K, 'Derivation of marginal effects of determinants of technical inefficiency' Economics letters, vol. 120, no. 2 (2013) DOI
Uncontrolled Keywords: stochastic frontier model,environmental variable,inefficiency
Publication ISSN: 1873-7374
Full Text Link:
Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
PURE Output Type: Letter
Published Date: 2013-08
Authors: Kumbhakar, Subal C.
Sun, Kai



Version: Accepted Version

Export / Share Citation


Additional statistics for this record