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| Graziella Bonanno and Filippo Domma |
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| ''Cost Efficiency, Asymmetry and Dependence in US electricity industry'' |
| ( 2018, Vol. 38 No.4 ) |
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| We propose an empirical application of models derived in Bonanno et al. (2017) for estimating cost efficiency (CE) on data used by Greene (1990) to test Gamma distribution for the inefficiency component and by Smith (2008) to test the dependence between the two error terms of a Stochastic Frontier (SF).
We also derive the closed–form of density function of the overall error term and the formula to calculate the Cost Efficiency (CE) scores. |
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| Keywords: Stochastic frontier, cost efficiency, Copula functions, dependence, electricity |
JEL: Q4 - Energy: General
D2 - Production and Organizations: General |
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| Manuscript Received : Oct 02 2017 | | Manuscript Accepted : Dec 10 2018 |
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