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On the influence of model setting on stochastic frontier analysis
Author(s) -
Staňková Michaela,
Hampel David
Publication year - 2020
Publication title -
mathematical methods in the applied sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.719
H-Index - 65
eISSN - 1099-1476
pISSN - 0170-4214
DOI - 10.1002/mma.6730
Subject(s) - inefficiency , estimator , mathematics , econometrics , frontier , stochastic frontier analysis , selection (genetic algorithm) , model selection , estimation , distribution (mathematics) , statistics , economics , computer science , archaeology , mathematical analysis , macroeconomics , management , artificial intelligence , production (economics) , history , microeconomics
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.