Normal-Uniform Distributed Stochastic Production Frontier Model

Kannaki.S; Mary Louis.L

doi:https://doi.org/10.14445/22315373/IJMTT-V38P520

International Journal of Mathematics Trends and Technology

Research Article | Open Access | Download PDF

Volume 38 | Number 2 | Year 2016 | Article Id. IJMTT-V38P520 | DOI : https://doi.org/10.14445/22315373/IJMTT-V38P520

Normal-Uniform Distributed Stochastic Production Frontier Model

Kannaki.S, Mary Louis.L

Citation :

Kannaki.S, Mary Louis.L, "Normal-Uniform Distributed Stochastic Production Frontier Model," International Journal of Mathematics Trends and Technology (IJMTT), vol. 38, no. 2, pp. 114-118, 2016. Crossref, https://doi.org/10.14445/22315373/IJMTT-V38P520

Abstract

Stochastic Production Frontier Model (SFM) plays a vital role in measuring technical efficiency in the field of production. In this paper, the technical efficiency of normal uniform stochastic frontier model was derived. The parameters were evaluated using Maximum likelihood Estimates. In the model is a two sided error term representing the statistical noise and is a one sided error term, representing inefficiency.

Keywords

Normal-Uniform distribution, stochastic normal-uniform production frontier model, Technical Efficiency, Maximum likelihood estimation.

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