Journal of Statistical and Econometric Methods

Interpreting Stochastic Frontier Model as Random Coefficient Model and Vice Versa

  • Pdf Icon [ Download ]
  • Times downloaded: 171
  • Abstract


    This note explores the relationship between the stochastic frontier model and the random coefficient regression model. It shows how to interpret the former as a special case of the latter and vice versa.

     

    JEL classification numbers: C13, C51, D24.

    Keywords: Stochastic production frontier, Random coefficient regression, Composite error, Technical inefficiency.