Consider a stochastic frontier model with one-sided inefficiency u, and suppose that the scale of u depends on some variables (firm characteristics) z. A one-step model specifies both the stochastic frontier and the way in which u depends on z, and can be estimated in a single step, for example...

As stated in the preamble of the founding Treaty of the European Economic Community (EEC) of 1957, the essential goal of European integration, is to improve the living and employment situation (usually measured in terms of per-capita GDP and unemployment rate) of EU citizens. From an economic...