Document Type

Working Paper

Date

2-2013

Keywords

Efficiency estimation, Order statistics, Multivariate inference, Multiplicity

Language

English

Series

Working Papers Series

Disciplines

Economic Policy | Economics | Public Affairs, Public Policy and Public Administration

Description/Abstract

In the stochastic frontier model we extend the multivariate probability statements of Horrace (2005) to calculate the conditional probability that a firm is any particular efficiency rank in the sample. From this we construct the conditional expected efficiency rank for each firm. Compared to the traditional ranked efficiency point estimates, firm-level conditional expected ranks are more informative about the degree of uncertainty of the ranking. The conditional expect ranks may be useful for empiricists. A Monte Carlo study and an empirical example are provided.

ISSN

1525-3066

Additional Information

Working paper no.153

Source

Local input

Creative Commons License

Creative Commons Attribution 4.0 International License
This work is licensed under a Creative Commons Attribution 4.0 International License.

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