Handling Losses in Translog Profit Models

In this paper, we compare standard approaches used to handle losses in logarithmic stochastic profit frontier models with a simple novel approach. We discuss discriminatory power, rank stability and precision of profit efficiency scores. Our new method enhances rank stability and discriminatory power, and improves the precision of profit efficiency scores.

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Year of publication:	2007
Authors:	Bos, Jaap W.B. ; Koetter, M.
Publisher:	Utrecht : Utrecht University, Utrecht School of Economics, Tjalling C. Koopmans Research Institute
Subject:	Profit Efficiency \| Stochastic Frontier Analysis \| Truncation \| Censoring

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Series:	Discussion Papers Series ; 07-17
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	hdl:10419/322729 [Handle] RePEc:use:tkiwps:0717 [RePEc]
Source:	EconStor

Persistent link: https://www.econbiz.de/10015435027