A Poisson Stochastic Frontier Model with Finite Mixture Structure

Kyriakos Drivas, Claire Economidou and Mike Tsionas

MPRA Paper from University Library of Munich, Germany

Abstract: Standard stochastic frontier models estimate log-linear specifications of production technology, represented mostly by production, cost, profit, revenue, and distance frontiers. We develop a methodology for stochastic frontier models of count data allowing for technological and inefficiency induced heterogeneity in the data and endogenous regressors. We derive the corresponding log-likelihood function and conditional mean of inefficiency to estimate technology regime-specific inefficiency. We further provide empirical evidence that demonstrates the applicability of the proposed model.

Keywords: efficiency; Poisson stochastic frontier; mixture; innovation; states (search for similar items in EconPapers)
JEL-codes: C13 C24 C33 C51 (search for similar items in EconPapers)
Date: 2014-07-20
New Economics Papers: this item is included in nep-ecm, nep-eff, nep-ino and nep-ore
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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