The field of production frontier estimation is divided between the parametric Stochastic Frontier Analysis (SFA) and the deterministic, nonparametric Data Envelopment Analysis (DEA). This paper explores an amalgam of DEA and SFA that melds a nonparametric frontier with a stochastic composite...

The regression residual is commonly used as a productivity indicator. However, the observed input demands are endogenous if rational managers adjust their input use for inefficiency. A large stream of studies considers possible solutions to the endogeneity problem that require as little external...

A new production-frontier specification is proposed when dealing with decision-making units whose efficiencies are correlated with the performances of the neighbors (spatial dependence), providing a bias reduction with respect to standard data envelopment analysis (DEA) methods. For the...

The literature of productive efficiency analysis is divided into two main branches: the parametric Stochastic Frontier Analysis (SFA) and nonparametric Data Envelopment Analysis (DEA). This paper attempts to combine the virtues of both approaches in a unified framework. We follow the SFA...

By integrating Battese and Coelli’s (1995) model and the spatial autoregressive model (SAR), a spatial autoregressive stochastic frontier model for panel data is developed. The main feature of this frontier model is a spatial lag term of explained variables and the joint structure of a...

This paper develops a non-linear stochastic frontier (SF) model. The main advantage of this model over standard SF models is that the model does not need an assumption for the distributional form of the inefficiency component. Another advantage of the developed model is that it can be used to...

By integrating Battese and Coelli's (1995) model and the spatial autoregressive model (SAR), a spatial autoregressive stochastic frontier model for panel data is developed. The main feature of this frontier model is a spatial lag term of explained variables and the joint structure of a...

Estimation of the one sided error component in stochastic frontier models may erroneously attribute firm characteristics to inefficiency if heterogeneity is unaccounted for. However, it is not clear in general in which component of the error distribution the covariates should be included. In the...

From an empirical perspective, this paper critically examines the concepts of returns to scale (RTS) and economies of scale (EOS), and argues that the concept of EOS is more relevant and broader enough to exhibit proper scale economies behavior of firms. Two approaches, i.e., production function...

This paper has presented a nonparametric approach to estimate the deterministic frontier model with unknown function form. Single index modeling and partially linear modeling techniques have been modified for estimation of a semi-parametric deterministic frontier model. Those approaches are free...