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Estimation Methods and Statistical Specifications

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

This chapter contains the core toolkit to apply 2TSF models. We present estimation methods (maximum likelihood, corrected OLS, generalized method of moments) as well as the main distributional specifications (Normal-Exponential and Normal-Half Normal). All required mathematical formulas to compute the metrics of Chap. 2 are also given. The chapter closes with informal diagnostics and formal statistical tests for model selection that is also the focus of the empirical application of the chapter.

Suggested Citation

  • Alecos Papadopoulos & Christopher F. Parmeter, 2025. "Estimation Methods and Statistical Specifications," Springer Books, in: Two-Tier Stochastic Frontier Analysis for the Social Sciences, chapter 0, pages 145-172, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-81513-3_7
    DOI: 10.1007/978-3-031-81513-3_7
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