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Production Frontiers and Panel Data: An Application to U.S. Class 1 Railroads

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Abstract

In this article, the appropriateness of inefficiency measures obtained directly from the production function as in Schmidt and Sickles (1984) is examined relative to those provided by (a) the cost function aproach, (b) Klein’s approach, and (c) the iterative SUR technique. Efficiency rankings yielded by different methods are also compared and tested.

Original languageEnglish
Pages (from-to)249-255
Number of pages7
JournalJournal of Business and Economic Statistics
Volume5
Issue number2
DOIs
StatePublished - Apr 1987

Keywords

  • Allocative inefficiency
  • Itsur
  • Klein’s two-step procedure
  • Technical inefficiency

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