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A Survey of Stochastic Frontier Models and Likely Future Developments
Christine Amsler,Young Hoon Lee,Peter Schmidt 서울대학교 경제연구소 2009 Seoul journal of economics Vol.22 No.1
This paper summarizes the literature on stochastic frontier production function models. It covers the definition of technical efficiency, the basic cross-sectional stochastic frontier model, and the stochastic frontier model with panel data and time-invariant as well as time-varying technical inefficiency. It also discusses models in which technical inefficiency depends on explanatory variables. Finally, it discusses the problem of inference on the inefficiencies and makes some predictions about likely future developments in the field.