This paper primarily reviews the panel stochastic frontier (SF) model in which the composite error term εit has four components, i.e. εit=τi−ηi+vit−uit, where ηi and uit are the persistent and transient inefficiency components, τi is the random firm effect and vit is the random noise....

A general assumption of the standard hedonic price model is that producers produce outputs/ services efficiently, and deviations from this situation are assumed to involve either overcharging or undercharging. Using the profit maximising behaviour, we derive an alternative hedonic model to show...