Arbeitspapier
Estimating Stochastic Ray Production Frontiers
In this paper, we consider the stochastic ray production function that has been revived recently by Henningsen et al. (2017). We use a profit-maximizing framework to resolve endogeneity problems that are likely to arise, as in all distance functions, and we derive the system of equations after incorporating technical inefficiency. As technical inefficiency enters non-trivially into the system of equations and the Jacobian is highly complicated, we propose Monte Carlo methods of inference. We illustrate the new approach using US banking data and we also address the problems of missing prices and selection of ordering for outputs.
- Language
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Englisch
- Bibliographic citation
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Series: IFRO Working Paper ; No. 2019/06
- Classification
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Wirtschaft
Bayesian Analysis: General
Estimation: General
Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- Subject
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Stochastic ray production frontier
Technical inefficiency
Profit maximization
Bayesian inference
- Event
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Geistige Schöpfung
- (who)
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Tsionas, Mike
Izzeldin, Marwan
Henningsen, Arne
Paravalos, Evaggelos
- Event
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Veröffentlichung
- (who)
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University of Copenhagen, Department of Food and Resource Economics (IFRO)
- (where)
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Copenhagen
- (when)
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2019
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Tsionas, Mike
- Izzeldin, Marwan
- Henningsen, Arne
- Paravalos, Evaggelos
- University of Copenhagen, Department of Food and Resource Economics (IFRO)
Time of origin
- 2019
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