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Modified Fixed Effects Estimation of Technical Inefficiency
Högskolan Dalarna, Akademin Industri och samhälle, Statistik. Swedish University of Agricultural Sciencies.ORCID-id: 0000-0003-4378-9593
2013 (engelsk)Rapport (Annet vitenskapelig)
Abstract [en]

We consider method of moment fixed effects (FE) estimation of technical inefficiency. When N, the number of cross sectional observations, is large it ispossible to obtain consistent central moments of the population distribution of the inefficiencies. It is well-known that the traditional FE estimator may be seriously upward biased when N is large and T, the number of time observations, is small. Based on the second central moment and a single parameter distributional assumption on the inefficiencies, we obtain unbiased technical inefficiencies in large N settings. The proposed methodology bridges traditional FE and maximum likelihood estimation – bias is reduced without the random effects assumption.

sted, utgiver, år, opplag, sider
Borlänge: Högskolan Dalarna , 2013. , s. 10
Serie
Working papers in transport, tourism, information technology and microdata analysis, ISSN 1650-5581 ; 2013: 21
Emneord [en]
Technical output inefficiency, Fixed effects estimator, Panel data, Method of moments
HSV kategori
Forskningsprogram
Komplexa system - mikrodataanalys
Identifikatorer
URN: urn:nbn:se:du-12793OAI: oai:DiVA.org:du-12793DiVA, id: diva2:642647
Tilgjengelig fra: 2013-08-22 Laget: 2013-08-22 Sist oppdatert: 2015-04-17bibliografisk kontrollert

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