max operator, stochastic frontier model, bootstrap, micro panel data
Bootstrap confidence intervals on fixed-effects efficiency estimates in micro panels exhibit low coverage probabilities. We propose an alternative efficiency measure involving the mean of the firm effects. With the same estimated efficiency ranks as the traditional measure, its corresponding bootstrap confidence intervals have better coverage probabilities.
Feng, Qu and Horrace, William C., "Estimating Technical Efficiency in Micro Panels" (2012). Economics Faculty Scholarship. 13.
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