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A comparison of pre- and post-crisis efficiency of OECD countries: evidence from a model with temporal heterogeneity in time and unobservable individual effect

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  • Roman Matkovskyy
Abstract
The purpose of this article is to estimate and compare shifts in (technical) efficiency across OECD countries, caused by the global financial crises and heterogeneity. Technical efficiency of OECD countries is estimated by applying the panel model with arbitrary temporal heterogeneity in time and factor structures (a model with unobservable individual effects) that fits the stochastic frontier analysis. Because of missing values in observations, the bootstrapping-based algorithm allowing for trends in data across observations within a cross-sectional unit is applied for imputations. The parameters are estimated in a semi-parametric way. The proposed estimation derives sufficient results regardless of any assumption on the temporal pattern of country individual effects and contributes to the development of a tool for better understanding of unobserved factors that drive fluctuations in OECD countries.

Suggested Citation

  • Roman Matkovskyy, 2016. "A comparison of pre- and post-crisis efficiency of OECD countries: evidence from a model with temporal heterogeneity in time and unobservable individual effect," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 13(2), pages 135-167, December.
    • Handle: RePEc:liu:liucej:v:13:y:2016:i:2:p:135-167
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    References listed on IDEAS

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    More about this item

    Keywords

    Efficiency; Stochastic Distance Frontier; Heterogeneity in Time; Unobserved Factors; Principal Component Analysis; Comparative Economics;
    All these keywords.

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • F15 - International Economics - - Trade - - - Economic Integration
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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