Calculating efficiency for spatial autoregressive stochastic frontier model

Authors

Levent Kutlu, The University of Texas Rio Grande ValleyFollow

Document Type

Article

Publication Date

4-2023

Abstract

When there are efficiency spillovers, we can use a spatial autoregressive stochastic frontier model to estimate total (spillover-corrected) efficiencies. Glass et al. (2016) provide a formula for total efficiency in this context, which is an approximation. We provide the exact formula for the spillover-corrected efficiency. Moreover, we derive total, direct, and indirect marginal effects of environmental variables on spillover-corrected efficiency.

Comments

Original published version available at https://doi.org/10.1016/j.econlet.2023.111043

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Recommended Citation

Kutlu, Levent. "Calculating efficiency for spatial autoregressive stochastic frontier model." Economics Letters 225 (2023): 111043. https://doi.org/10.1016/j.econlet.2023.111043

Publication Title

Economics Letters

DOI

10.1016/j.econlet.2023.111043