Work

Markov switching stochastic frontier model

Year: 2004

Type: article

Abstract: In this paper, we propose a new approach to stochastic frontier models, viz., a Markov switching structure to accommodate cross‐sectional parameter heterogeneity and temporal variation in the parameters and technical inefficiency distributions. The Markov Chain Monte Carlo techniques are developed and implemented for Bayesian inferences on parameters and technical efficiency. We illustrate new methods by estimating world production frontiers using international panel data on 59 countries observed for 26 years.

Source: Econometrics Journal

DOI: 10.1111/j.1368-423x.2004.00137.x

Authors: Efthymios G. Tsionas, Subal C. Kumbhakar

Institutions: Athens University of Economics and Business, Binghamton University

Language: English

Topic: Efficiency Analysis Using DEA

Subfield: Management Science and Operations Research

Field: Decision Sciences

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2137862012

FWCI: 2.101

Cites: 53

Cited by: 42

Related to: 10