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New Developments in the Estimation of Stochastic Frontier Models with Panel Data

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  • Greene, William

Abstract

In this paper we deal with the estimation of the stochastic frontier model using panel data. Panel data provide a fruitful setting for analyzing firm efficiency and a rich proving ground for the development of useful new techniques. We discuss three classes of models, fixed effects, random parameters, and latent classes, that should provide promising platforms for researchers.

Suggested Citation

  • Greene, William, 2001. "New Developments in the Estimation of Stochastic Frontier Models with Panel Data," Efficiency Series Papers 2001/06, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    • Handle: RePEc:oeg:wpaper:2001/06
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    References listed on IDEAS

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    1. William Greene, 2001. "Fixed and Random Effects in Nonlinear Models," Working Papers 01-01, New York University, Leonard N. Stern School of Business, Department of Economics.
    2. Efthymios Tsionas, 2000. "Full Likelihood Inference in Normal-Gamma Stochastic Frontier Models," Journal of Productivity Analysis, Springer, vol. 13(3), pages 183-205, May.
    3. William Greene, 2003. "Simulated Likelihood Estimation of the Normal-Gamma Stochastic Frontier Function," Journal of Productivity Analysis, Springer, vol. 19(2), pages 179-190, April.
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    9. Atkinson, Scott E. & Cornwell, Christopher, 1993. "Measuring technical efficiency with panel data : A dual approach," Journal of Econometrics, Elsevier, vol. 59(3), pages 257-261, October.
    10. Greene, W., 2001. "Estimating Econometric Models with Fixed Effects," New York University, Leonard N. Stern School Finance Department Working Paper Seires 01-10, New York University, Leonard N. Stern School of Business-.
    11. James J. Heckman & Thomas E. Macurdy, 1980. "A Life Cycle Model of Female Labour Supply," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(1), pages 47-74.
    12. Atkinson, Scott E & Cornwell, Christopher, 1994. "Parametric Estimation of Technical and Allocative Inefficiency with Panel Data," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 35(1), pages 231-243, February.
    13. Kumbhakar, Subal C., 1990. "Production frontiers, panel data, and time-varying technical inefficiency," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 201-211.
    14. Stevenson, Rodney E., 1980. "Likelihood functions for generalized stochastic frontier estimation," Journal of Econometrics, Elsevier, vol. 13(1), pages 57-66, May.
    15. G. S. Maddala, 1987. "Limited Dependent Variable Models Using Panel Data," Journal of Human Resources, University of Wisconsin Press, vol. 22(3), pages 307-338.
    16. Pitt, Mark M. & Lee, Lung-Fei, 1981. "The measurement and sources of technical inefficiency in the Indonesian weaving industry," Journal of Development Economics, Elsevier, vol. 9(1), pages 43-64, August.
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    Cited by:

    1. Julio Peña & Julio Aguirre & René Cerca D'amico, 2004. "Pesca demersal en Chile: eficiencia técnica y escalas de operación," Revista de Analisis Economico – Economic Analysis Review, Universidad Alberto Hurtado/School of Economics and Business, vol. 19(1), pages 119-160, June.
    2. Nadia Belhaj Hassine & Magda Kandil, 2009. "Trade liberalisation, agricultural productivity and poverty in the Mediterranean region," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 36(1), pages 1-29, March.
    3. Pedro Macedo & Elvira Silva, 2010. "A stochastic production frontier model with a translog specification using the generalized maximum entropy estimator," Economics Bulletin, AccessEcon, vol. 30(1), pages 587-596.
    4. Efthymios G. Tsionas & Panayotis G. Michaelides, 2016. "A Spatial Stochastic Frontier Model with Spillovers: Evidence for Italian Regions," Scottish Journal of Political Economy, Scottish Economic Society, vol. 63(3), pages 243-257, July.
    5. Efthymios G. Tsionas & Kien C. Tran & Panayotis G. Michaelides, 2019. "Bayesian inference in threshold stochastic frontier models," Empirical Economics, Springer, vol. 56(2), pages 399-422, February.
    6. Kumbhakar, Subal C. & Tsionas, Efthymios G., 2005. "Measuring technical and allocative inefficiency in the translog cost system: a Bayesian approach," Journal of Econometrics, Elsevier, vol. 126(2), pages 355-384, June.
    7. Efthymios G. Tsionas, 2006. "Inference in dynamic stochastic frontier models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(5), pages 669-676.
    8. Kalyan Chakraborty & Richard K. Harper, 2017. "Measuring the Impact of Socio-Economic Factors on School Efficiency in Australia," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 45(2), pages 163-179, June.
    9. repec:kap:iaecre:v:14:y:2008:i:2:p:228-241 is not listed on IDEAS
    10. Helen Louri & Costas Peppas & Efthymios Tsionas, 2006. "Foreign Presence, Technical Efficiency and Firm Survival in Greece: A Simultaneous Equation Model with Latent Variables Approach," International Studies in Entrepreneurship, in: Enrico Santarelli (ed.), Entrepreneurship, Growth, and Innovation, chapter 0, pages 199-221, Springer.
    11. Jeff Richardson & John Wildman & Iain K. Robertson, 2003. "A critique of the World Health Organisation's evaluation of health system performance," Health Economics, John Wiley & Sons, Ltd., vol. 12(5), pages 355-366, May.
    12. Kalyan Chakraborty & John Poggio, 2008. "Efficiency and Equity in School Funding: A Case Study for Kansas," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 14(2), pages 228-241, May.
    13. repec:ebl:ecbull:v:30:y:2010:i:1:p:587-596 is not listed on IDEAS
    14. Subal Kumbhakar & Efthymios Tsionas & Timo Sipiläinen, 2009. "Joint estimation of technology choice and technical efficiency: an application to organic and conventional dairy farming," Journal of Productivity Analysis, Springer, vol. 31(3), pages 151-161, June.
    15. Carlos Pestana Barros & Julio del Corral & Pedro Garcia-del-Barrio, 2008. "Identification of Segments of Soccer Clubs in the Spanish League First Division With a Latent Class Model," Journal of Sports Economics, , vol. 9(5), pages 451-469, October.

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