Neoclassical versus frontier production models? Testing for the skewness of regression residuals

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Standard

Neoclassical versus frontier production models? Testing for the skewness of regression residuals. / Kuosmanen, Timo; Fosgerau, Mogens.

I: Scandinavian Journal of Economics, Bind 111, Nr. 2, 2009, s. 351-367.

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt

Harvard

Kuosmanen, T & Fosgerau, M 2009, 'Neoclassical versus frontier production models? Testing for the skewness of regression residuals', Scandinavian Journal of Economics, bind 111, nr. 2, s. 351-367. https://doi.org/10.1111/j.1467-9442.2009.01567.x

APA

Kuosmanen, T., & Fosgerau, M. (2009). Neoclassical versus frontier production models? Testing for the skewness of regression residuals. Scandinavian Journal of Economics, 111(2), 351-367. https://doi.org/10.1111/j.1467-9442.2009.01567.x

Vancouver

Kuosmanen T, Fosgerau M. Neoclassical versus frontier production models? Testing for the skewness of regression residuals. Scandinavian Journal of Economics. 2009;111(2):351-367. https://doi.org/10.1111/j.1467-9442.2009.01567.x

Author

Kuosmanen, Timo ; Fosgerau, Mogens. / Neoclassical versus frontier production models? Testing for the skewness of regression residuals. I: Scandinavian Journal of Economics. 2009 ; Bind 111, Nr. 2. s. 351-367.

Bibtex

@article{e57672f7c3234eed92365d79cb253684,
title = "Neoclassical versus frontier production models? Testing for the skewness of regression residuals",
abstract = "The empirical literature on production and cost functions is divided into two strands. The neoclassical approach concentrates on model parameters, while the frontier approach decomposes the disturbance term to a symmetric noise term and a positively skewed inefficiency term. We propose a theoretical justification for the skewness of the inefficiency term, arguing that this skewness is the key testable hypothesis of the frontier approach. We propose to test the regression residuals for skewness in order to distinguish the two competing approaches. Our test builds directly upon the asymmetry of regression residuals and does not require any prior distributional assumptions.",
keywords = "Firms and production, Frontier estimation, Hypothesis testing, Production function, Productive efficiency analysis",
author = "Timo Kuosmanen and Mogens Fosgerau",
year = "2009",
doi = "10.1111/j.1467-9442.2009.01567.x",
language = "English",
volume = "111",
pages = "351--367",
journal = "Scandinavian Journal of Economics",
issn = "0347-0520",
publisher = "Wiley-Blackwell",
number = "2",

}

RIS

TY - JOUR

T1 - Neoclassical versus frontier production models? Testing for the skewness of regression residuals

AU - Kuosmanen, Timo

AU - Fosgerau, Mogens

PY - 2009

Y1 - 2009

N2 - The empirical literature on production and cost functions is divided into two strands. The neoclassical approach concentrates on model parameters, while the frontier approach decomposes the disturbance term to a symmetric noise term and a positively skewed inefficiency term. We propose a theoretical justification for the skewness of the inefficiency term, arguing that this skewness is the key testable hypothesis of the frontier approach. We propose to test the regression residuals for skewness in order to distinguish the two competing approaches. Our test builds directly upon the asymmetry of regression residuals and does not require any prior distributional assumptions.

AB - The empirical literature on production and cost functions is divided into two strands. The neoclassical approach concentrates on model parameters, while the frontier approach decomposes the disturbance term to a symmetric noise term and a positively skewed inefficiency term. We propose a theoretical justification for the skewness of the inefficiency term, arguing that this skewness is the key testable hypothesis of the frontier approach. We propose to test the regression residuals for skewness in order to distinguish the two competing approaches. Our test builds directly upon the asymmetry of regression residuals and does not require any prior distributional assumptions.

KW - Firms and production

KW - Frontier estimation

KW - Hypothesis testing

KW - Production function

KW - Productive efficiency analysis

UR - http://www.scopus.com/inward/record.url?scp=65449121015&partnerID=8YFLogxK

U2 - 10.1111/j.1467-9442.2009.01567.x

DO - 10.1111/j.1467-9442.2009.01567.x

M3 - Journal article

AN - SCOPUS:65449121015

VL - 111

SP - 351

EP - 367

JO - Scandinavian Journal of Economics

JF - Scandinavian Journal of Economics

SN - 0347-0520

IS - 2

ER -

ID: 181872812