Abstract

This paper proposes a unified framework for accommodating both time and cross-sectional dependence in modelling technical efficiency in stochastic frontier models by combining the exogenously driven factor-based approach and an endogenous threshold efficiency regime selection mechanism. This approach is able to deal with both weak and strong cross-sectional dependence in a flexible manner. Using a dataset of 26 OECD countries over 1970–2010, we provide satisfactory estimation results for the production technology parameters and the associated efficiency ranking of individual countries. We find a positive spillover effect on efficiency, supporting the hypothesis that knowledge spillover is more likely to be induced by technological proximity. Furthermore, our approach enables us to identify efficiency clubs endogenously.

Autore Pugliese

• Serlenga Laura

Tutti gli autori

• SERLENGA L.

Titolo volume/Rivista

Non Disponibile

Anno di pubblicazione

2016

ISSN

0883-7252

ISBN

Non Disponibile

Numero di citazioni Wos

Nessuna citazione

Ultimo Aggiornamento Citazioni

Non Disponibile

Numero di citazioni Scopus

6

Ultimo Aggiornamento Citazioni

Non Disponibile

Settori ERC

Non Disponibile

Codici ASJC

Non Disponibile