TY - JOUR
T1 - Practical illustrations of the two recent contributions to stochastic frontier models
AU - Tsukuda, Yoshihiko
AU - Miyakoshi, Tatsuyoshi
PY - 2006/3/15
Y1 - 2006/3/15
N2 - In a recent year, the conditional expectation for technical inefficiency (i.e., the predictor) in stochastic frontier production models and its confidence interval are proved to be increasing in the individual firm's inefficiency effect, which is defined as the mean of the normal distribution that is truncated at zero. This paper illustrates how the two recent contributions work in practice and how these findings are significant, by using the Battese and Coelli (1995) type specification and giving an empirical study on the Japanese pharmaceutical industry.
AB - In a recent year, the conditional expectation for technical inefficiency (i.e., the predictor) in stochastic frontier production models and its confidence interval are proved to be increasing in the individual firm's inefficiency effect, which is defined as the mean of the normal distribution that is truncated at zero. This paper illustrates how the two recent contributions work in practice and how these findings are significant, by using the Battese and Coelli (1995) type specification and giving an empirical study on the Japanese pharmaceutical industry.
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U2 - 10.1080/13504850500393022
DO - 10.1080/13504850500393022
M3 - Article
AN - SCOPUS:33645111221
VL - 13
SP - 229
EP - 233
JO - Applied Economics Letters
JF - Applied Economics Letters
SN - 1350-4851
IS - 4
ER -