Measuring profit efficiency with McFadden's gauge function

Glenn Sheriff

doi:10.1016/j.econlet.2005.02.014

Measuring profit efficiency with McFadden's gauge function

Glenn Sheriff

Research output: Contribution to journal › Article › peer-review

3 Scopus citations

Abstract

Traditional input or output-based technical efficiency measures render composed error stochastic profit frontier estimation intractable for cross-sectional data. An alternative measure based on the gauge function simplifies estimation, permitting econometric techniques commonly used for stochastic cost frontiers.

Original language	English (US)
Pages (from-to)	272-277
Number of pages	6
Journal	Economics Letters
Volume	88
Issue number	2
DOIs	https://doi.org/10.1016/j.econlet.2005.02.014
State	Published - Aug 2005
Externally published	Yes

Keywords

Efficiency
Gauge function
Stochastic frontier analysis
Translog profit function

ASJC Scopus subject areas

Finance
Economics and Econometrics

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10.1016/j.econlet.2005.02.014

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title = "Measuring profit efficiency with McFadden's gauge function",

abstract = "Traditional input or output-based technical efficiency measures render composed error stochastic profit frontier estimation intractable for cross-sectional data. An alternative measure based on the gauge function simplifies estimation, permitting econometric techniques commonly used for stochastic cost frontiers.",

keywords = "Efficiency, Gauge function, Stochastic frontier analysis, Translog profit function",

author = "Glenn Sheriff",

year = "2005",

month = aug,

doi = "10.1016/j.econlet.2005.02.014",

language = "English (US)",

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KW - Efficiency

KW - Gauge function

KW - Stochastic frontier analysis

KW - Translog profit function

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DO - 10.1016/j.econlet.2005.02.014

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JO - Economics Letters

JF - Economics Letters

IS - 2

ER -

Measuring profit efficiency with McFadden's gauge function

Abstract

Keywords

ASJC Scopus subject areas

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