A microfoundation for stochastic frontier analysis

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4 Citations (Scopus)

Abstract

This paper provides a microfoundation for distributions of technical inefficiency in parametric stochastic production frontier analysis. It shows that dial-setting technology à la Jovanovic and Nyarko (1996) implies a gamma distribution with a specific set of parameters that depends on a manager's experience or his/her prediction ability.

Original languageEnglish
Pages (from-to)15-17
Number of pages3
JournalEconomics Letters
Volume139
DOIs
Publication statusPublished - 2016 Feb 1

Keywords

  • Gamma distribution
  • Learning-by-doing
  • Stochastic frontier production function

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance

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