Rm. Adams et al., Semiparametric approaches to stochastic panel frontiers with applications in the banking industry, J BUS ECON, 17(3), 1999, pp. 349-358
This article introduces new modeling and estimation methods designed to hel
p mitigate problems of endogeneity and misspecification. We use an output d
istance function to model the technology of a multioutput firm. We also use
results from Park and Simar and Park, Sickles, and Simar on semiparametric
efficient estimation of panel models to estimate multioutput stochastic di
stance frontiers, for which the distribution of the effects and a subgroup
of regressors is not specified. Furthermore, we introduce a new semiparamet
ric method that makes minimal assumptions on the functional form of inputs
in the distance function.