Hernandez-Trillo, Fausto; Pagan, José A.; Paxton, Julia - 2015
growth. Using firm level data from Mexico's National Survey of Microenterprises, we estimate a stochastic frontier production … function with inefficiency effects related to the main sources of start-up capital. Microenterprises utilizing bank loans … on family, friends and on own financial sources. Bank loans led to the highest degree of technical efficiency, indicating …