Document Type
Article
Date
6-20-2002
Keywords
confidence intervals, stochastic frontier models, efficiency measurement
Disciplines
Economics
Description/Abstract
This paper is an empirical study of the uncertainty associated with technical efficiency estimates from stochastic frontier models. We show how to construct confidence intervals for estimates of technical efficiency levels under different sets of assumptions ranging from the very strong to the relatively weak. We demonstrate empirically how the degree of uncertainty associated with these estimates relates to the strength of the assumptions made and to various features of the data.
Recommended Citation
Horrace, William C. and Schmidt, Peter, "Confidence Statements for Efficiency Estimates from Stochastic Frontier Models" (2002). Economics - All Scholarship. 27.
https://surface.syr.edu/ecn/27
Source
local input
Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.
Additional Information
William C. Horrace is currently at Syracuse University.