<Para ID="Par1">The fixed effects (‘FE’) estimator of technical inefficiency performs poorly when N (the ’number of firms’) is large and T (the ‘number of time observations’) is small. We propose kernel estimators, which includes the FE estimator as a special case. In terms of criteria based on...</para>

Firms and organizations, public or private, often operate on markets characterized by non-competitiveness. For example agricultural activities in the western world are heavily subsidized and electricity is supplied by firms with market power. In general it is probably more difficult to find...