Journal of Productivity Analysis

, Volume 5, Issue 2, pp 171–180 | Cite as

Estimation of a non-neutral stochastic frontier production function

  • Clief J. Huang
  • Jin-Tan Liu
Article

Abstract

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.

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References

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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

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