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Mustafa U. Karakaplan and Levent Kutlu |
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''Handling Endogeneity in Stochastic Frontier Analysis'' |
( 2017, Vol. 37 No.2 ) |
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We present a general maximum likelihood based framework to handle the endogeneity problem in the stochastic frontier models. We implement Monte Carlo experiments to analyze the performance of our estimator. Our findings show that our estimator outperforms standard estimators that ignore endogeneity. |
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Keywords: Battese-Coelli Estimator, Endogeneity, Efficiency |
JEL: C1 - Econometric and Statistical Methods: General C5 - Econometric Modeling: General |
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Manuscript Received : Aug 02 2016 | | Manuscript Accepted : May 01 2017 |
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