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Article
Confidence Statements for Efficiency Estimates from Stochastic Frontier Models
Economics - All Scholarship
  • William C Horrace, Michigan State University
  • Peter Schmidt, Michigan State University
Document Type
Article
Date
6-20-2002
Keywords
  • confidence intervals,
  • stochastic frontier models,
  • efficiency measurement
Disciplines
Description/Abstract

This paper is an empirical study of the uncertainty associated with technical efficiency estimates from stochastic frontier models. We show how to construct confidence intervals for estimates of technical efficiency levels under different sets of assumptions ranging from the very strong to the relatively weak. We demonstrate empirically how the degree of uncertainty associated with these estimates relates to the strength of the assumptions made and to various features of the data.

Additional Information

William C. Horrace is currently at Syracuse University.

Source
local input
Creative Commons License
Creative Commons Attribution 3.0
Citation Information
William C Horrace and Peter Schmidt. "Confidence Statements for Efficiency Estimates from Stochastic Frontier Models" (2002)
Available at: http://works.bepress.com/horrace/23/