Estimating technical efficiency in micro panels

Qu Feng; William C. Horrace

doi:10.1016/j.econlet.2012.08.031

Estimating technical efficiency in micro panels

Qu Feng, William C. Horrace

Department of Economics

Research output: Contribution to journal › Article › peer-review

1 Scopus citations

Abstract

Bootstrap confidence intervals on fixed-effects efficiency estimates in micro panels exhibit low coverage probabilities. We propose an alternative efficiency measure involving the mean of the firm effects. With the same estimated efficiency ranks as the traditional measure, its corresponding bootstrap confidence intervals have better coverage probabilities.

Original language	English (US)
Pages (from-to)	730-733
Number of pages	4
Journal	Economics Letters
Volume	117
Issue number	3
DOIs	https://doi.org/10.1016/j.econlet.2012.08.031
State	Published - 2012

Keywords

Bootstrap
Max operator
Micro panel data
Stochastic frontier model

ASJC Scopus subject areas

Finance
Economics and Econometrics

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10.1016/j.econlet.2012.08.031

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title = "Estimating technical efficiency in micro panels",

abstract = "Bootstrap confidence intervals on fixed-effects efficiency estimates in micro panels exhibit low coverage probabilities. We propose an alternative efficiency measure involving the mean of the firm effects. With the same estimated efficiency ranks as the traditional measure, its corresponding bootstrap confidence intervals have better coverage probabilities.",

keywords = "Bootstrap, Max operator, Micro panel data, Stochastic frontier model",

author = "Qu Feng and Horrace, {William C.}",

year = "2012",

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language = "English (US)",

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T1 - Estimating technical efficiency in micro panels

AU - Feng, Qu

AU - Horrace, William C.

PY - 2012

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N2 - Bootstrap confidence intervals on fixed-effects efficiency estimates in micro panels exhibit low coverage probabilities. We propose an alternative efficiency measure involving the mean of the firm effects. With the same estimated efficiency ranks as the traditional measure, its corresponding bootstrap confidence intervals have better coverage probabilities.

AB - Bootstrap confidence intervals on fixed-effects efficiency estimates in micro panels exhibit low coverage probabilities. We propose an alternative efficiency measure involving the mean of the firm effects. With the same estimated efficiency ranks as the traditional measure, its corresponding bootstrap confidence intervals have better coverage probabilities.

KW - Bootstrap

KW - Max operator

KW - Micro panel data

KW - Stochastic frontier model

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UR - http://www.scopus.com/inward/citedby.url?scp=84865983014&partnerID=8YFLogxK

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DO - 10.1016/j.econlet.2012.08.031

M3 - Article

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SN - 0165-1765

VL - 117

SP - 730

EP - 733

JO - Economics Letters

JF - Economics Letters

IS - 3

ER -

Estimating technical efficiency in micro panels

Abstract

Keywords

ASJC Scopus subject areas

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