Alternative technical efficiency measures: skew, bias and scale

• Main Authors: Feng, Qu., Horrace, William C.
• Other Authors: School of Humanities and Social Sciences
• Format: Article
• Language: English
• Published: 2013
• Subjects: DRNTU::Social sciences::Economic theory
• Online Access: https://hdl.handle.net/10356/105568; http://hdl.handle.net/10220/17036; http://dx.doi.org/10.1002/jae.1190
• Institution: Nanyang Technological University

In the fixed-effects stochastic frontier model an efficiency measure relative to the best firm in the sample is universally employed. This paper considers a new measure relative to the worst firm in the sample. We find that estimates of this measure have smaller bias than those of the traditional me...