A stochastic frontier regression model with dynamic frontier
Article Type
Research Article
Publication Title
Communications in Statistics: Simulation and Computation
Abstract
We consider a stochastic frontier regression model with a time dependent efficiency process, which is assumed to follow an exponential autoregressive sequence. The likelihood for the model is derived in the context of a bivariate exponential distribution. Bayesian method is suggested for the estimation of parameters. We apply the model and the estimation procedure to a panel of US airlines data and show empirically that the model is dynamic in the sense that it reveals improvement in the efficiency or reduction in the inefficiency over time.
First Page
1415
Last Page
1428
DOI
10.1080/03610918.2015.1011333
Publication Date
6-2-2020
Recommended Citation
Ramanathan, T. V.; Rohan, Neelabh; and Abraham, Bovas, "A stochastic frontier regression model with dynamic frontier" (2020). Journal Articles. 248.
https://digitalcommons.isical.ac.in/journal-articles/248