Misspecification in allocative inefficiency: A simulation study

We make an extensive simulation analysis in order to investigate the consequences of ignoring the potentially complex and data dependent effects of allocative inefficiency on the estimation of stochastic frontier panel data models. Generally system estimators perform worse than single equation estimators. This result holds even when we approximate the allocative inefficiency.

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Year of publication:	2013
Authors:	Kutlu, Levent
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 118.2013, 1, p. 151-154
Publisher:	Elsevier
Subject:	Technical inefficiency \| Allocative inefficiency \| Stochastic frontier \| Panel data

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Type of publication:	Article
Classification:	C2 - Econometric Methods: Single Equation Models ; C3 - Econometric Methods: Multiple/Simultaneous Equation Models
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010603102