Title: Robust estimation of stochastic frontier models
Authors: Margarita Gladkova - Saint Petersburg State University (Russia)
Artem Prokhorov - University of Sydney (Australia)
Rustam Ibragimov - Imperial College London and St. Petersburg State University (United Kingdom)
Evgenii Gilenko - Saint Petersburg State University (Russia) [presenting]
Glafira Kukhareva - Saint Petersburg State University (Russia)
Abstract: Robust methodological tools are developed for stochastic frontier analysis which will permit major improvement of production efficiency by means of a reliable estimation of production functions. A key outcome is the creation of a new generation of stochastic productivity models that can accommodate such important features of the real world as flexible specification of production function, endogeneity of inputs and dependence between inputs and environmental variables. The aim is to contribute to the development of quantitative tools capable of better representing the complex reality of modern production processes. The application of these methods is illustrated on actual data.