On the choice of functional form in stochastic frontier modeling

被引：4

作者：

Konstantinos Giannakas

Kien C. Tran

Vangelis Tzouvelekas

机构：

[1] Department of Agricultural Economics, University of Nebraska-Lincoln, Lincoln, NE 68583-0922

[2] Department of Economics, University of Saskatchewan, Saskatoon, Sask. S7N 5A5

[3] Department of Economics, University of Crete, Rethymno

来源：

Empirical Economics | 2003年 / 28卷 / 1期

关键词：

Box-Cox transformation; Functional specifications; Greek olive oil; Stochastic frontiers; Technical efficiency;

D O I：

10.1007/s001810100120

中图分类号：

学科分类号：

摘要：

This paper examines the effect of functional form specification on the estimation of technical efficiency using a panel data set of 125 olive-growing farms in Greece for the period 1987-93. The generalized quadratic Box-Cox transformation is used to test the relative performance of alternative, widely used, functional forms and to examine the effect of prior choice on final efficiency estimates. Other than the functional specifications nested within the Box-Cox transformation, the comparative analysis includes the minflex Laurent translog and generalized Leontief that possess desirable approximation properties. The results indicate that technical efficiency measures are very sensitive to the choice of functional specification. Perhaps most importantly, the choice of functional form affects the identification of the factors affecting individual performance - the sources of technical inefficiency. The analysis also shows that while specification searches do narrow down the set of feasible alternatives, the identification of the most appropriate functional specification might not always be (statistically) feasible.

引用

页码：75 / 100

页数：25

共 43 条

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