This paper proposes a bivariate continuous model based on normal–half normal distributions for testing the independence of idiosyncratic and inefficiency terms in the stochastic frontier model in a maximum likelihood framework. This model allows us to construct a closed-form of the marginal...

This study measures the efficiency of Indian states in raising health outcomes, using the stochastic frontier methodology for panel data for the period 2000-2009. [MSE WORKING PAPER 70/2012]. URL: [http://www.mse.ac.in/pub/working%20pape70%20-%20web(1).pdf].

This paper proposes a semiparametric smooth-coefficient (SPSC) stochastic production frontier model where regression coefficients are unknown smooth functions of environmental factors (Z). Technical inefficiency is specified in the form of a parametric scaling function which also depends on the...

The aim of this article is to estimate the determinants of industrial productivity growth in Colombia’s regions. In this regard, we follow to Kumbhakar and Lovell (2000), who decompose total factor productivity growth into three sources: technical change, scale economies and technical...

A method and results of economic efficiency estimation of advertisement activities carried out by a commercial bank are described. The main consideration is given to auto loans. The purpose of these activities is to increase consumer loans volumes. The resulted credit volumes are also estimated....

A stochastic frontier cost function is estimated using panel data for the electricity generating industry in India. The impact of distributional and functional form assumptions on technical inefficiency and the sources of inefficiency are investigated by using maximum likelihood, GLS and...

The core of the present study is to analyse the cost efficiency of public transit systems in Italy, investigating the way subsidization mechanisms and network characteristics affect the x-inefficiency levels of firms. The analysis uses a seven-year (1993-1999) unbalanced panel of 45 Italian...