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Switching regressions and activity analysis

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  • Ley, Eduardo

Abstract

We study the use of switching regression models to characterize the coefficients in linear production technologies with a finite number of activities. Maximum likelihood-based methods are proposed and different switching specifications are discussed. The viability of these newly proposed technniques is established. The methods developed combine the advantages of the two major approaches to frontier estimation: the functional flexibility of the linear programing-nonparametric and nonstatistical-approach and the statistical nature of the econometric-both parametric and statistical-approach. This combination comes at the expense of some analytical complexity.

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  • Ley, Eduardo, 1992. "Switching regressions and activity analysis," UC3M Working papers. Economics 5820, Universidad Carlos III de Madrid. Departamento de Economía.
    • Handle: RePEc:cte:werepe:5820
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    References listed on IDEAS

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    1. C. Lovell & Shawna Grosskopf & Eduardo Ley & Jesús Pastor & Diego Prior & Philippe Eeckaut, 1994. "Linear programming approaches to the measurement and analysis of productive efficiency," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 2(2), pages 175-248, December.

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