Document Type
Article
Date
10-11-2006
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.
Recommended Citation
Feng, Qu and Horrace, William C., "Fixed-Effect Estimation of Technical Efficiency with Time-Invariant Dummies" (2006). Economics - All Scholarship. 11.
https://surface.syr.edu/ecn/11
Source
local input
Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.
