Ramos Millán, A.
Roldán Casas, José Ángel
Dios Palomares, Rafaela
2013-07-12T11:39:35Z
2013-07-12T11:39:35Z
2002
http://hdl.handle.net/10396/10722
This study seeks to analyse some important questions related to the Stochastic
Frontier Model, such as the method proposed by Jondrow et al
(1982) to separate the error term into its two components, and the measure
of efficiency given by Timmer (1971). To this purpose, a Monte Carlo
experiment has been carried out using the Half-Normal and Normal-
Exponential specifications throughout the rank of the γ parameter. The estimation
errors have been eliminated, so that the intrinsic variability of the
conditional of u given ε can be evaluated. In addition, the behaviour of
the mean and mode as point estimators of u is investigated. The results have
yielded some interesting findings. We have observed that both the point
estimates and the mean efficiency are more precise in cases of lower efficiency.
This occurs when the variable that generates the inefficiency outweighs
the one that picks up the errors out of the control.
The change in order found between the estimated efficiency and its true
value is misleadingly high especially for low γ, which underlines the risk
of estimating at these values
application/pdf
eng
Universitat Politecnica de Catalunya
https://creativecommons.org/licenses/by-nc-nd/4.0/
Questiió: Quaderns d'Estadística, Sistemes, Informatica i Investigació Operativa 26 (3), 443-459 (2002)
Bias
MSE
Point estimator
Production frontier
Jondrow formulae
Analysis on the individual efficiency prediction in the composed error frontier model: a Monte Carlo study
info:eu-repo/semantics/article
info:eu-repo/semantics/openAccess