A comparison between maximum likelihood and Bayesian estimation of stochastic frontier production models

In this paper, the finite sample properties of the maximum likelihood and Bayesian estimators of the half-normal stochastic frontier production function are analyzed and compared through a Monte Carlo study. The results show that the Bayesian estimator should be used in preference to the maximum lik...

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Detalles Bibliográficos
Autores: Ortega, Francisco J., Gavilán Ruiz, José Manuel
Tipo de recurso: artículo
Estado:Versión aceptada para publicación
Fecha de publicación:2014
País:España
Institución:Universidad de Sevilla (US)
Repositorio:idUS. Depósito de Investigación de la Universidad de Sevilla
OAI Identifier:oai:idus.us.es:11441/70548
Acceso en línea:https://hdl.handle.net/11441/70548
https://doi.org/10.1080/03610918.2012.743564
Access Level:acceso abierto
Palabra clave:Bayesian estimator
Maximum likelihood
Monte Carlo
Stochastic frontier
Descripción
Sumario:In this paper, the finite sample properties of the maximum likelihood and Bayesian estimators of the half-normal stochastic frontier production function are analyzed and compared through a Monte Carlo study. The results show that the Bayesian estimator should be used in preference to the maximum likelihood owing to the fact that the mean square error performance is substantially better in the Bayesian framework