Endogeneity in stochastic frontier models: Copula approach without external instruments

C-Tier
Journal: Economics Letters
Year: 2015
Volume: 133
Issue: C
Pages: 85-88

Authors (2)

Tran, Kien C. (University of Lethbridge) Tsionas, Efthymios G. (not in RePEc)

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

This papers considers an alternative estimation procedures for estimating stochastic frontier models with endogenous regressors when no external instruments are available. The approach we propose is based on copula function to directly model the correlation between the endogenous regressors and the composed errors. Estimation of model parameters is done using maximum likelihood. Monte Carlo simulations are used to assess and compare the finite sample performances of the proposed estimation procedures.

Technical Details

RePEc Handle
repec:eee:ecolet:v:133:y:2015:i:c:p:85-88
Journal Field
General
Author Count
2
Added to Database
2026-01-29