We investigated the empirical relationship between firms collateral values and land-secured loans over asset price cycles. A simultaneous equation model of loan demand and supply was estimated using a transaction-level data set from Taiwan. The data set contains collateral information and...

We propose a method of moment estimator for a stochastic frontier model in which one of the independent variables is measured with errors. The estimator corrects for the measurement errors, and it requires only minimal assumption on the error distribution, has no need for additional data, and is...

A Practitioner's Guide to Stochastic Frontier Analysis Using Stata provides practitioners in academia and industry with a step-by-step guide on how to conduct efficiency analysis using the stochastic frontier approach. The authors explain in detail how to estimate production, cost, and profit...

This paper is concerned with significance testing of the effects of exogenous determinants upon the one-sided deviation term of a semiparametric stochastic frontier model. Two nonparametric significance tests for all or a subset of the determinants of inefficiency are proposed. The proposed...

How do firms smooth production when facing financing uncertainty? By using a model incorporating financing constraints, this paper shows that firms may adjust capacity utilization rates to buffer against financing disturbances. In particular, it emphasizes that variable capacity utilization...