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Estimating stochastic frontier systems with unbalanced panel data: The case of floor tile manufactories in egypt
Author(s) -
Seale James L.
Publication year - 1990
Publication title -
journal of applied econometrics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.878
H-Index - 99
eISSN - 1099-1255
pISSN - 0883-7252
DOI - 10.1002/jae.3950050105
Subject(s) - allocative efficiency , panel data , estimator , econometrics , inefficiency , frontier , economics , maximum likelihood , mathematics , statistics , microeconomics , geography , archaeology
A generalized stochastic frontier system is fitted with unbalanced panel data of Egyptian floor tileries and estimated using OLS, ‘within’, feasible GLS, and maximum likelihood. Hausman tests indicate ‘within’ is the correct estimator for the data. Estimates of firm‐level technical and allocative inefficiencies (and their costs) are presented for each of the estimators. Finally, sources of technical inefficiency are investigated.