Estimating efficiency in a spatial autoregressive stochastic frontier model

Authors

Levent Kutlu, The University of Texas Rio Grande ValleyFollow

Document Type

Article

Publication Date

2-2018

Abstract

The spatial autoregressive stochastic frontier model of Glass et al.(2016) is based on distributional assumptions on two-sided and one-sided error terms. After estimating the model parameters, the efficiency estimates need to be corrected due to the presence of spatial autoregressive term in their model. Glass et al.(2016) estimate the corrected efficiencies by employing ideas from a distribution-free method on the efficiency estimation, which may be sensitive to outliers. We propose an alternative way to correct efficiency estimates that is in line with the distribution-based methods.

Comments

Original published version available at https://doi.org/10.1016/j.econlet.2017.12.025

Recommended Citation

Kutlu, Levent. “Estimating Efficiency in a Spatial Autoregressive Stochastic Frontier Model.” Economics Letters 163 (February 1, 2018): 155–57. https://doi.org/10.1016/j.econlet.2017.12.025.

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.

First Page

155

Last Page

157

Publication Title

Economics Letters

DOI

10.1016/j.econlet.2017.12.025