Arbeitspapier

Spatial Stochastic Frontier Models

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The stochastic frontier model with heterogeneous technical efficiency explained by exogenous variables is augmented with a sparse spatial autoregressive component for a cross-section data, and a spatial-temporal component for a panel data. An estimation procedure that takes advantage of the additivity of the model is proposed, computational advantages over simultaneous maximum likelihood estimation of all parameters is exhibited. The technical efficiency estimates are comparable to existing models and estimation procedures based on maximum likelihood methods. A spatial or spatial-temporal component can improve estimates of technical efficiency in a production frontier that is usually biased downwards.

Language: Englisch

Bibliographic citation: Series: PIDS Discussion Paper Series ; No. 2010-08

Classification: Wirtschaft

Subject: technical efficiency
stochastic frontier
Philippines
spatial externalities
spatial-temporal model
backfitting
Technische Effizienz
Panel
Maximum-Likelihood-Schätzung

Event: Geistige Schöpfung

(who): Lavado, Rouselle F.
Barrios, Erniel B.

Event: Veröffentlichung

(who): Philippine Institute for Development Studies (PIDS)

(where): Makati City

(when): 2010

Handle: http://hdl.handle.net/10419/126805

Last update: 10.03.2025, 11:42 AM CET

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Object type

Arbeitspapier

Associated

Lavado, Rouselle F.
Barrios, Erniel B.
Philippine Institute for Development Studies (PIDS)

Time of origin

2010

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