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On the influence of model setting on stochastic frontier analysis
Authors:Michaela Sta&#x;kov  David Hampel
Institution:Michaela Staňková,David Hampel
Abstract:This article deals with the comparison of technical efficiency results through various stochastic frontier analysis models. Effects of model type, possible frontier shift, distribution of inefficiency term, different output variable, and estimator selection were explored. For this purpose, aggregated annual data within the EU construction sector from 2000 to 2015 were used for the efficiency estimation. The resulting efficiency values were compared by correlation coefficients. Among others, it has been shown that estimator selection may strongly affect efficiency estimate for particular models.
Keywords:BC estimator  inefficiency distribution  JLMS estimator  production models  stochastic frontier analysis  stochastic models
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