Productivity and efficiency estimation : a semiparametric stochastic cost frontier approach

Sun, K; Kumbhakar, SC; Tveterås, R

Abstract

This paper proposes a flexible stochastic cost frontier panel data model where the technology parameters are unknown smooth functions of firm- and time-effects, which non-neutrally shift the cost frontier. The model decomposes inefficiency into firm and time-specific components and productivity change into inefficiency change, technical change and scale change. We then apply the proposed methodology to the Norwegian salmon production data and analyze technical efficiency as well as productivity changes.

Citation

Sun, K., Kumbhakar, S., & Tveterås, R. (2015). Productivity and efficiency estimation : a semiparametric stochastic cost frontier approach. European Journal of Operational Research, 245(1), 194-202. https://doi.org/10.1016/j.ejor.2015.03.003

• Journal Article Type: Article
• Acceptance Date: Mar 2, 2015
• Online Publication Date: Mar 6, 2015
• Publication Date: Aug 16, 2015
• Deposit Date: May 18, 2015
• Journal: European Journal of Operational Research
• Print ISSN: 0377-2217
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 245
• Issue: 1
• Pages: 194-202
• DOI: https://doi.org/10.1016/j.ejor.2015.03.003
• Publisher URL: http://dx.doi.org/10.1016/j.ejor.2015.03.003
• Related Public URLs: http://www.journals.elsevier.com/european-journal-of-operational-research/