Received stochastic frontier analyses with panel data have relied on traditional fixed and random effects models. We propose extensions that circumvent two shortcomings of these approaches. The conventional panel data estimators assume that technical or cost inefficiency is time invariant....

This paper considers the measurement of firm's specific (in)efficiency while allows for the possible heterogeneous technologies adopted by different firms. A flexible stochastic frontier model with random coefficients is proposed to distinguish technical inefficiency from technological...

The effect of aggregation on estimates of stochastic frontier functions is considered. Inefficiency is assumed associated with the individual units being aggregated. In this case, the aggregated data have a closed skew normal distribution. Estimating the parameters of a closed skew normal...

Parametric stochastic frontier models yield firm-level conditional distributions of inefficiency that are truncated normal. Given these distributions, how should one assess and rank firm-level efficiency? This study compares the techniques of estimating (a) the conditional mean of inefficiency...

The aim of this study is to evaluate the efficiency of public transport operations undertaken in Swedish counties by the Public Transport Authorities (PTA), taking into account the substantial differences in operating conditions between counties. The analysis will be performed using Stochastic...

The absence of adequate land leveling coupled with the ill designed traditional furrow irrigation systems and the poor condition of drainage structures in most Syrian farms are leading to over-irrigation. A stochastic production frontier and inefficiency model has been estimated to measure the...

The article deals with problems related to the stochastic frontier model of bank efficiency measurement. The model is used to study the efficiency of the banking sector of The Russian Federation. It is based on the stochastic approach both to the efficiency frontier location and to individual...

In this paper we analyze the evolution of firm efficiency in the Czech Republic. Using a large panel of more than 190,000 Czech firm/years we study whether firms fully utilize their resources, how firm efficiency evolves over time, and how firm efficiency is determined by ownership structure. We...