A stochastic frontier production function that incorporates a model for technical inefficiency effects is used to investigate the industrial production of Greek food industries. Panel data comes from 29 Greek firms in 1988 through 1992. Parameters considered in the model for inefficiency effects...

This paper focuses on the practice of serial correlation correcting of the Linear Regression Model (LRM) by modeling the error. Simple Monte Carlo experiments are used to demonstrate the following points regarding this practice. First, the common factor restrictions implicitly imposed on the...