Document Type

Article

Date

6-20-2002

Embargo Period

12-5-2012

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.

Additional Information

William C. Horrace is currently at Syracuse University.

Source

local input

Creative Commons License

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

Included in

Economics Commons

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