A note on the likelihood ratio test on the equality of group frontiers

C-Tier
Journal: Economics Letters
Year: 2017
Volume: 155
Issue: C
Pages: 5-8

Authors (2)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The empirical applications of the metafrontier analysis have largely been popularized by the publications of Battese et al. (2004), and O’Donnell et al. (2008). Prior to the estimation of the metafrontier function, it is generally suggested to conduct a likelihood-ratio (LR) test to test if all group frontiers are the same. In this short note, we point out that although the null hypothesis of the suggested LR test restricts all frontiers to be the same for all groups, the heterogeneity in the error distribution may exist and should be considered. We propose a restricted LR test as an alternative procedure.

Technical Details

RePEc Handle
repec:eee:ecolet:v:155:y:2017:i:c:p:5-8
Journal Field
General
Author Count
2
Added to Database
2026-01-25