We propose an empirical application of models derived in Bonanno et al. (2017) for estimating cost efficiency (CE) on data used by Greene (1990) to test Gamma distribution for the inefficiency component and by Smith (2008) to test the dependence between the two error terms of a Stochastic Frontier (SF). We also derive the closed-form of denisty function of the overall error term and the formula to calculate the Cost Efficiency (CE) scores.
Cost efficiency, asymmetry and dependence in US electricity industry
Bonanno, Graziella;
2018
Abstract
We propose an empirical application of models derived in Bonanno et al. (2017) for estimating cost efficiency (CE) on data used by Greene (1990) to test Gamma distribution for the inefficiency component and by Smith (2008) to test the dependence between the two error terms of a Stochastic Frontier (SF). We also derive the closed-form of denisty function of the overall error term and the formula to calculate the Cost Efficiency (CE) scores.File in questo prodotto:
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