A Post-Truncation Parameterization of Truncated Normal Technical Inefficiency

Preprint OPEN
Christine Amsler; Peter Schmidt; Wen-Jen Tsay;
  • Subject:
    mesheuropmc: sense organs

In this paper we consider a stochastic frontier model in which the distribution of technical inefficiency is truncated normal. In standard notation, technical inefficiency u is distributed as N^+ (μ,σ^2). This distribution is affected by some environmental variables z t... View more
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