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Metrics for the Latent Effects

In: Two-Tier Stochastic Frontier Analysis for the Social Sciences

Author

Listed:
  • Alecos Papadopoulos

    (Athens University of Economics and Business)

  • Christopher F. Parmeter

    (University of Miami)

Abstract

In this chapter we define certain metrics that measure in various ways the effects of latent forces in a 2TSF model. The metrics change form depending on whether the outcome we seek to explain enters the model in its original units of measurement or logarithmically transformed. They are also defined both at the sample (where we use the expected value) and observation level (where we use the conditional expectation). Two empirical applications illustrate how these metrics can be put to use.

Suggested Citation

  • Alecos Papadopoulos & Christopher F. Parmeter, 2025. "Metrics for the Latent Effects," Springer Books, in: Two-Tier Stochastic Frontier Analysis for the Social Sciences, chapter 0, pages 25-54, Springer.
  • Handle: RePEc:spr:sprchp:978-3-031-81513-3_2
    DOI: 10.1007/978-3-031-81513-3_2
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