A stochastic production frontier model with a translog specification using the generalized maximum entropy estimator

In this paper, an empirical application of the generalized maximum entropy estimator in a stochastic production frontier model with a translog specification is discussed to investigate technical efficiency in a wine region of Portugal. The empirical results indicate technical progress over the time period of the sample and an increasing technical inefficiency over time. All production units are technically inefficient, although wine cooperatives are less inefficient than private firms.