In this paper, based on the cumulative distribution function (CDF) method (Jradiet al., 2021) for finding the optimal quantile when estimating stochastic frontier models(SFM) with normal-exponential composite error term, we derive an expression to findthe optimal quantile for the SFM with...

It is well known that when the empirical skewness of the OLS residuals display the opposite sign of what is expected from the stochastic frontier model, maximum likelihood estimation will be equivalent to OLS and no inefficiency will be recovered. A variety of approaches to operate in this...