On the Ability to Disentangle the Two Errors in the Normal/Half -Normal Stochastic Frontier Model

In this paper, a simulation experiment is carried out in the framework of the normal/half -normal stochastic frontier model in order to analyse its ability to disentangle the two types of errors that form the composite error. According to the results obtained through the mean bias and the mean squar...

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Detalles Bibliográficos
Autores: Gavilán Ruiz, José Manuel, Ortega, Francisco J.
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2015
País:España
Institución:Universidad de Sevilla (US)
Repositorio:idUS. Depósito de Investigación de la Universidad de Sevilla
OAI Identifier:oai:idus.us.es:11441/70569
Acceso en línea:https://hdl.handle.net/11441/70569
Access Level:acceso abierto
Palabra clave:Production Models
Stochastic Frontier
Maximum Likelihood
Monte Carlo
Modelos de producción
Frontera estocástica
Máxima verosimilitud
Descripción
Sumario:In this paper, a simulation experiment is carried out in the framework of the normal/half -normal stochastic frontier model in order to analyse its ability to disentangle the two types of errors that form the composite error. According to the results obtained through the mean bias and the mean squared error of the parameters and efficiencies, and via Spearman rank correlation between actual and estimated efficiencies, a good performance of the model is only obtained when considering medium -sized or large samples and the variance of the inefficiencies highly contributes to that of the composite error. The problems of wrong skewness and absence of random error are also addressed. The influence on the results of selecting a wrong distribution for the inefficienc y term is also analysed