A Practitioner's Guide to Stochastic Frontier Analysis Using Stata

by Subal C. Kumbhakar, Hung-Jen Wang, Alan P. Horncastle

Subject categories
ISBNs
  • 9781107029514
  • 9781316190821
  • 9781316188965
A Practitioner's Guide to Stochastic Frontier Analysis Using Stata provides practitioners in academia and industry with a step-by-step guide on how to conduct efficiency analysis using the stochastic frontier approach. The authors explain in detail how to estimate production, cost, and profit efficiency and introduce the basic theory of each model in an accessible way, using empirical examples that demonstrate the interpretation and application of models. This book also provides computer code, allowing users to apply the models in their own work, and incorporates the most recent stochastic frontier models developed in academic literature. Such recent developments include models of heteroscedasticity and exogenous determinants of inefficiency, scaling models, panel models with time-varying inefficiency, growth models, and panel models that separate firm effects and persistent and transient inefficiency. Immensely helpful to applied researchers, this book bridges the chasm between theory and practice, expanding the range of applications in which production frontier analysis may be implemented.
  • Cambridge University Press; January 2015
  • ISBN: 9781316190821
  • Read online, or download in secure PDF or secure ePub format
  • Title: A Practitioner's Guide to Stochastic Frontier Analysis Using Stata
  • Author: Subal C. Kumbhakar; Hung-Jen Wang; Alan P. Horncastle
  • Imprint: Cambridge University Press
Subject categories
ISBNs
  • 9781107029514
  • 9781316190821
  • 9781316188965

In The Press

'A competent empirical application of Stochastic Frontier Analysis (SFA) requires a clear understanding of both the production economics and the econometric theory behind the specified model side by side with adequate programming skills to write the necessary software codes. Apart from a clear exposition of the economic theory behind various stochastic frontier models that represent the technology (like the Distance Functions) and/or producer behavior (like the Cost or Profit Functions) and the relevant econometric theory, the authors offer detailed instructions on how to write the commands for various models in Stata and explain how to interpret the results. This book will prove to be invaluable for every serious researcher using SFA to measure production efficiency.' Subhash C. Ray, University of Connecticut

Subject categories
ISBNs
  • 9781107029514
  • 9781316190821
  • 9781316188965