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| Volume 10, No. 1,
April 2011 |
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On the Distribution of
Estimated Technical Efficiency |
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in Stochastic Frontier Models:
Revisited |
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Anup Kumar Bhandari |
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Centre for Development
Studies, India |
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| Abstract |
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Both theoretical and empirical
literatures on the stochastic frontier production model have been
substantially enriched since 1977. However, attempts to derive the
distribution of the estimated one-sided error term, even under
restricted assumptions, have only recently been provided. This study
attempts to derive the distribution of the estimated one-sided
inefficiency error and several important statistical properties
under fairly general assumptions. We also derive the distribution of
estimated technical efficiency and provide an empirical
illustration. |
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Key words:
stochastic frontier; inefficiency error; estimated technical
efficiency;
leather industry |
| JEL
classification:
C34; D24 |
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