Economics and Finance Faculty Publications and Presentations

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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.


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Economics Letters



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Finance Commons



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