Ilmakunnas, Pekka; Pesola, Hanna - 2003
Stochastic production frontiers are used for estimating regional matching functions where unemployment outflow is … 'produced' by the unemployed and vacancies. The frontier is estimated using regional panel data from Finland from 1988 to 1997 … stochastic frontier matching function has constant returns, whereas in OLS estimation with fixed effects the returns are slightly …
