Endogenous Inputs and Environmental Variables in Battese and Coelli's (1995) Stochastic Frontier Model
10 Pages Posted: 27 Aug 2018
Date Written: August 15, 2018
In this study, we provide a guideline for dealing with endogenous inputs and environmental variables in Battese and Coelli’s (1995) stochastic frontier model. Our Monte Carlo simulations show that our estimators perform well.
Keywords: endogeneity, environmental variables, stochastic frontier, technical efficiency, Battese–Coelli estimator
JEL Classification: C13, C33, C36, D24
Suggested Citation: Suggested Citation