A0325
Title: The Xistence of inefficiency: LASSO+SFA
Authors: Artem Prokhorov - University of Sydney (Australia) [presenting]
Christopher Parmeter - University of Miami (United States)
Valentin Zelenyuk - University of Queensland (Australia)
Abstract: The purpose is to revisit the classic debate between past studies on the notion of the inefficiency of economic agents, whether it exists, and if and how it can be explained via some economic variables in practice. Unlike the original debate, the articulation is based on a modern statistical approach. Specifically, the attempt is to obtain insights into the problem of observing (or not) inefficiency in the presence of a high number of conditioning (or so-called environmental) variables. The focus is on the post-single LASSO and post-double LASSO under different scenarios.