Bhaumik, Sumon Kumar; Das, Pranab Kumar; Kumbhakar, Subal C. - In: Journal of Banking & Finance 36 (2012) 5, pp. 1311-1319
We propose the use of stochastic frontier approach to modelling financial constraints of firms. The main advantage of the stochastic frontier approach over the stylised approaches that use pooled OLS or fixed effects panel regression models is that we can not only decide whether or not the...
