A GENERAL FRAMEWORK FOR FRONTIER ESTIMATION WITH PANEL-DATA

Authors
Citation
A. Kneip et L. Simar, A GENERAL FRAMEWORK FOR FRONTIER ESTIMATION WITH PANEL-DATA, JOURNAL OF PRODUCTIVITY ANALYSIS, 7(2-3), 1996, pp. 187-212
Citations number
34
Categorie Soggetti
Business,"Social Sciences, Mathematical Methods
ISSN journal
0895562X
Volume
7
Issue
2-3
Year of publication
1996
Pages
187 - 212
Database
ISI
SICI code
0895-562X(1996)7:2-3<187:AGFFFE>2.0.ZU;2-C
Abstract
The main objective of the paper is to present a general framework for estimating production frontier models with panel data. A sample of fir ms i = 1, ..., N is observed on several time periods t = 1, ...T. In t his framework, nonparametric stochastic models for the frontier will b e analyzed. The usual parametric formulations of the literature are vi ewed as particular cases and the convergence of the obtained estimator s in this general framework are investigated. Special attention is dev oted to the role of N and of T on the speeds of convergence of the obt ained estimators. First, a very general model is investigated. In this model almost no restriction is imposed on the structure of the model or of the inefficiencies. This model is estimable from a nonparametric point of view but needs large values of T and of N to obtain reliable estimates of the individual production funct ions and estimates of th e frontier function. Then more specific nonparametric firm effect mode ls are presented. In these cases, only NT must be large to estimate th e common production function; but again both large N and T are needed for estimating individual efficiencies and for estimating the frontier . The methods are illustrated through a numerical example with real da ta.