Document Type

Article

Date

10-11-2006

Embargo Period

9-26-2012

Keywords

Stochastic frontier, technical effiency, bias

Disciplines

Economics

Description/Abstract

“Within” estimation of the fixed-effect stochastic frontier model does not identify parameters on time-invariant explanatory variables. If time-invariant variables are important production inputs, then standard efficiency estimates are biased. This note details bias correction, when time-invariant inputs are dummy variables.

Source

local input

Creative Commons License


This work is licensed under a Creative Commons Attribution 3.0 License.

Included in

Economics Commons

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