Wang, Wei Siang; Schmidt, Peter - In: Journal of Econometrics 148 (2009) 1, pp. 36-45
We consider a stochastic frontier model with error [epsilon]=v-u, where v is normal and u is half normal. We derive the distribution of the usual estimate of u,E(u[epsilon]). We show that as the variance of v approaches zero, E(u[epsilon])-u converges to zero, while as the variance of v...