Journal of Productivity Analysis

, Volume 5, Issue 2, pp 171–180

Estimation of a non-neutral stochastic frontier production function

  • Clief J. Huang
  • Jin-Tan Liu

DOI: 10.1007/BF01073853

Cite this article as:
Huang, C.J. & Liu, JT. J Prod Anal (1994) 5: 171. doi:10.1007/BF01073853


This article proposed a hybrid of a stochastic frontier regression. The proposed model and estimation differ from the conventional model of Aigner, Lovell, and Schmidt. The model combines a stochastic frontier regression and a truncated regression to estimate the production frontier with non-neutral shifting of the average production function. The truncated regression identifies the sources of efficiency. The article presents empirical evidence of non-neutral effects of the firm's characteristics—the age of the firms, the export ratio, and the R&D expenditure—on the frontier production function and production efficiency in the Taiwan's electronics industry.

Copyright information

© Kluwer Academic Publishers 1994

Authors and Affiliations

  • Clief J. Huang
    • 1
  • Jin-Tan Liu
    • 2
    • 3
  1. 1.Department of EconomicsVanderbilt UniversityNashville
  2. 2.Department and Graduate Institute of EconomicsNational Taiwan UniversityTaipeiTaiwan
  3. 3.Institute of EconomicsAcademia SinicaTaipeiTaiwan