As vividly demonstrated in Maddala (1983), limited and qualitative dependent variables are often encountered in modern econometric analysis. However, analytical methods for evaluating technical efficiency of stochastic frontier analysis can only be applied to continuous dependent variable. This...

This paper considers the maximum likelihood estimation of a stochastic frontier production function with an interval outcome. We derive an analytical formula for calculating the likelihood function of the interval stochastic frontier models. Monte Carlo experiments reveal that the finite sample...

This paper derives an analytic approximation formula for the likelihood function of the true random effects stochastic frontier model of Greene (2005) with a time span T = 2. Gaussian quadrature procedure and simulation-based method is not required for the closed-form approach. Combining the...