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sector. The most popular ones are based on envelopment estimators, like the FDH or DEA estimators, that estimate the …
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Simar and Wilson (J. Econometrics, 2007) provided a statistical model that can rationalize two-stage estimation of technical efficiency in nonparametric settings. Two-stage estimation has been widely used, but requires a strong assumption: the second-stage environmental variables cannot affect...
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