Testing specification of distribution in stochastic frontier analysis

• Published in: Journal of econometrics Vol. 239; no. 2; p. 105280
• Main Authors: Cheng, Ming-Yen, Wang, Shouxia, Xia, Lucy, Zhang, Xibin
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 01.02.2024
• Subjects: data collection; econometric models; Local polynomial regression; Nonparametric smoothing; sample size; Semiparametric models; Undersmoothing; Varying-coefficient models; Semiparametric models; Varying-coefficient models; Nonparametric smoothing; Local polynomial regression; Undersmoothing

Stochastic frontier analysis is regularly used in empirical studies to evaluate the productivity and efficiency of companies. A typical stochastic frontier model involves a parametric frontier subject to a composite error term consisting of an inefficiency and a random error. We develop new tests fo...