We propose a spatial autoregressive stochastic frontier model, which allows for endogenous spillovers (i.e., the spatial weighting matrix is not independent of the two-sided error term). The parameters of the model are estimated via the maximum likelihood estimation method. Monte Carlo...

This paper investigates whether there is any relationship between farm size, technical efficiency and the use of agrochemicals which are potentially environmentally contaminating. These questions are pertinent in the context of current EU policy decisions. Using two models of stochastic frontier...

We develop a new spatial inefficiency stochastic frontier model. Our spatial inefficiency stochastic frontier model meets the following conditions: (a) It can detect not only positive, but also negative spatial autocorrelation of inefficiency; (b)The inefficiency follows a truncated normal...

We provide an axiomatic foundation for efficiency measurement in the full space, referred to as "graph efficiency" measurement by Färe, Grosskopf, and Lovell [1985]. We posit four types of axioms: indication, monotonicity, independence of units of measurement, and continuity. We analyze six...

This study proposes a "Flexible Cost Model" (FCM) for settings in which firms may be unable or unwilling to optimally manage their cost structures. FCM, which nests a wide range of more restrictive models, allows for a flexible specification not only of the technology but also of firm-level...

In a stochastic frontier setting, we examine technical efficiency in the Middle East and North Africa (MENA). Evidence suggests that in addition to economic indicators, political and social ones play a key role in development and frontier technical efficiency profiles. The MENA have been...

In the innovation literature, little attention has been paid to technical efficiency as a measure of performance, despite the fact that technical efficiency is key to explaining firm productivity. In this study we analyze the influence of internal R&D, external R&D and R&D cooperation on the...

This study explores the reduction potential of greenhouse gases for major pollution emitting countries of the world using nonparametric productivity measurement methods and directional distance functions. In contrast to the existing literature we apply optimization methods to endogenously...

The problem of competitiveness has becoming one of the main concerns of European governments. This is reflected trough out the Europe 2020 Strategy that includes as key priority the promotion of efficient and productive use of inputs. Differently to other "well-behaved" European "neighbours", in...