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Stochastic frontier models with threshold efficiency

机译:具有阈值效率的随机边界模型

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摘要

This paper proposes a tail-truncated stochastic frontier model that allows for the truncation of technical efficiency from below. The truncation bound implies the inefficiency threshold for survival. Specifically, this paper assumes a uniform distribution of technical inefficiency and derives the likelihood function. Even though this distributional assumption imposes a strong restriction that technical inefficiency has a uniform probability density over [0, θ], where θ is the threshold parameter, this model has two advantages: (1) the reduction in the number of parameters compared with more complicated tail-truncated models allows better performance in numerical optimization; and (2) it is useful for empirical studies of the distribution of efficiency or productivity, particularly the truncation of the distribution. The Monte Carlo simulation results support the argument that this model approximates the distribution of inefficiency precisely, as the data-generating process not only follows the uniform distribution but also the truncated half-normal distribution if the inefficiency threshold is small.
机译:本文提出了一种尾部截断的随机前沿模型,该模型允许从下面截断技术效率。截断边界意味着生存的低效率阈值。具体来说,本文假设技术效率低下的分布均匀,并得出似然函数。即使此分布假设对技术效率低下在[0,θ]上具有统一的概率密度(其中θ是阈值参数)施加了严格的限制,该模型仍具有两个优点:(1)与更多参数相比,参数数量减少了复杂的尾部截断模型使数值优化具有更好的性能; (2)对于效率或生产率分布的实证研究是有用的,尤其是分布的截断。蒙特卡罗模拟结果支持这样的论点,即该模型精确地估计了效率的分布,因为如果效率阈值较小,则数据生成过程不仅遵循均匀分布,而且遵循截断的半正态分布。

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