Polachek, Solomon W; Yoon, Bong Joon - In: Journal of Applied Econometrics 11 (1996) 2, pp. 169-78
This paper uses panel data to estimate a two-tiered instead of a one-tiered frontier model. The innovation is to develop a two-step maximum likelihood procedure yielding consistent estimates of inefficiency, while at the same time accounting for heterogeneity. The model is applied by estimating...