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Zbl 0366.90026
Aigner, Dennis; Lovell, C.A.Knox; Schmidt, Peter
(Knox Lovell, C.A.)
Formulation and estimation of stochastic frontier production function models.
(English)
[J] J. Econom. 6, No. 1, 21-37 (1977). ISSN 0304-4076

Summary: Previous studies of the so-called frontier production function have not utilized an adequate characterization of the disturbance term for such a model. In this paper we provide an appropriate specification, by defining the disturbance term as the sum of symmetric normal and (negative) half-normal random variables. Various aspects of maximum-likelihood estimation for the coefficients of a production function with an additive disturbance term of this sort are then considered.

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MSC 2000:
*91B38 Production theory etc.
62P20 Appl. of statistics to economics

Cited in: Zbl 1188.62380 Zbl 1115.62033 Zbl pre05214614 Zbl 0713.62110

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Highlights
Scientific prize winners of the ICM 2010
Overhang
Lie groups, physics and geometry. An introduction for physicists, engineers and chemists.

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