This paper proposes a stochastic frontier panel data model in which unit-specific inefficiencies are spatially … inefficiency is disentangled from time invariant unobserved heterogeneity in a panel data model à la Greene (2005); iii) systematic … that the estimation approach is consistent, showing good finite sample properties especially in small samples …

inefficiency in the market. The paper discusses estimation of a stochastic frontier panel model with unobserved fixed effects. On … accurate enough for maximum likelihood estimation. Simulations assess finite sample performances of estimators and show that …