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Stationary Points for Parametric Stochastic Frontier Models
Journal article   Peer reviewed

Stationary Points for Parametric Stochastic Frontier Models

William C Horrace and Ian A Wright
Journal of business & economic statistics, Vol.38(3), pp.516-526
2020-07-02

Abstract

Dirac delta Singular distribution Inefficiency estimation Ordinary least squares Generalized function
Stationary point results on the normal-half-normal stochastic frontier model are generalized using the theory of the Dirac delta, and distribution-free conditions are established to ensure a stationary point in the likelihood as the variance of the inefficiency distribution goes to zero. Stability of the stationary point and "wrong skew" results are derived or simulated for common parametric assumptions on the model. We discuss identification and extensions to more general stochastic frontier models.

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Collaboration types
Domestic collaboration
Citation topics
6 Social Sciences
6.10 Economics
6.10.502 Data Envelopment Analysis
Web Of Science research areas
Economics
Social Sciences, Mathematical Methods
Statistics & Probability
ESI research areas
Economics & Business

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