Open AccessInterpreting Stochastic Frontier Model as Random Coefficient Model and Vice Versa
Author(s) -
Spyros Missiakoulis
Publication year - 2021
Publication title -
journal of statistical and econometric methods
Language(s) - English
DOI - 10.47260/jsem/1042
Subject(s) - inefficiency , random effects model , econometrics , mathematics , frontier , versa , statistics , regression analysis , stochastic modelling , regression , computer science , economics , geography , medicine , meta analysis , archaeology , database , microeconomics
This note explores the relationship between the stochastic frontier model and the random coefficient regression model. It shows how to interpret the former as a special case of the latter and vice versa.JEL classification numbers: C13, C51, D24.Keywords: Stochastic production frontier, Random coefficient regression, Composite error, Technical inefficiency.
Accelerating Research
Robert Robinson Avenue,
Oxford Science Park, Oxford
OX4 4GP, United Kingdom
Address
John Eccles HouseRobert Robinson Avenue,
Oxford Science Park, Oxford
OX4 4GP, United Kingdom