Abstract
In this paper we propose a non-radial and output-specific measure of technical efficiency which is new in a stochastic frontier model. We consider a multi-output multi-input transformation function formulation that incorporates output-specific technical efficiency (OSTE) in a revenue maximizing framework. Starting from the dual revenue function with OSTE, we develop the maximum likelihood method to estimate the parameters of the translog revenue-share system as well as predict OSTE components using some novel results from the closed skew-normal distribution.
| Original language | English |
|---|---|
| Pages (from-to) | 42-45 |
| Number of pages | 4 |
| Journal | Economics Letters |
| Volume | 138 |
| DOIs | |
| State | Published - Jan 1 2016 |
Keywords
- C30
- Closed skew-normal distribution
- D24
- Stochastic frontier
- Technical inefficiency
- Transformation function
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