This paper utilizes the average derivative estimation of Stoker (1986) and the pesudo-likelihood estimation of Fan, Li, and Weersink (1996) to estimate a semiparametric stochastic frontier regression, y=g(x) + ε, where the function g(.)is unknown and ε is a composite error in a standard...

In this paper, a switching regression model is developed to analyze farmers' choice behavior and cost efficiency in field plowing arrangement in Taiwan. We find that the decision on the choice of plowing arrangement is determined by a cost comparison between self-plowing and hired-service, and...

This paper derives an analytic closed-form formula for the cumulative distribution function (cdf) of the composite error of the stochastic frontier analysis (SFA) model. Since the presence of a cdf is frequently encountered in the likelihood-based analysis with limited-dependent and qualitative...

In this article, we formulate a behavioural model under uncertainty to estimate Total Factor Productivity (TFP) in the Taiwan banking industry. In particular, the article provides a model based on the safety-first rule under uncertainty to measure the risk premium in banking operations that are...