2017RePEc: Research Papers in EconomicsRequires access

Handling Endogeneity in Stochastic Frontier Analysis

Mustafa U. Karakaplan, Levent Kutlu

Open publisher page 96 citations

Abstract

We present a general maximum likelihood based framework to handle the endogeneity problem in the stochastic frontier models. We implement Monte Carlo experiments to analyze the performance of our estimator. Our findings show that our estimator outperforms standard estimators that ignore endogeneity.

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About this research paper

What this paper is about

We present a general maximum likelihood based framework to handle the endogeneity problem in the stochastic frontier models. We implement Monte Carlo experiments to analyze the performance of our estimator. Our findings show that our estimator outperforms standard estimators that ignore endogeneity.

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OpenAlex reports 96 citations for this work. Citation counts describe recorded attention and do not establish research quality.

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Available abstract

We present a general maximum likelihood based framework to handle the endogeneity problem in the stochastic frontier models. We implement Monte Carlo experiments to analyze the performance of our estimator. Our findings show that our estimator outperforms standard estimators that ignore endogeneity.

Key concepts: Endogeneity, Estimator, Econometrics, Frontier, Monte Carlo method, Economics, Maximum likelihood, Computer science

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