Kumbhakar, Subal; Lai, Hung-Pin - In: International journal of empirical economics 1 (2022) 1, pp. 1-38
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....