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Free Download Efficiency and Productivity Analysis: Using Copulas in Stochastic Frontier Models
English | 2024 | ISBN: 0367346109 | 245 Pages | PDF (True) | 6 MB
Following a comprehensive review of classic methodology, Professor Artem Prokhorov covers topics in panel data modelling, in endogeneity in SFA, in joint modelling of technical and allocative inefficiency, and in optimal and robust prediction of inefficiency scores. This is done using copulas to capture various kinds of statistical dependence that have been previously ignored when modelling production. The classic and advanced topics are illustrated using practical examples and codes written in modern programming languages. As an important example, the book spells out the case where both the values of output and their ratio of inputs used in production are optimized simultaneously. Such simultaneity, if ignored, leads to biased estimates of productivity and returns-to-scale and may understate inefficiency.
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