Author： Ghadge Chanchala Ramanathan T. V.
Publisher： Taylor & Francis Ltd
ISSN： 0361-0918
Source： Communications in Statistics: Simulation and Computation, Vol.40, Iss.1, 2011-01, pp. : 111-124
Disclaimer: Any content in publications that violate the sovereignty, the constitution or regulations of the PRC is not accepted or approved by CNPIEC.
Abstract
We propose a class of rank tests for testing the randomness of technology parameters in a stochastic frontier regression model. The asymptotic distribution of the test statistic is derived using the weak convergence results of empirical and rank processes. Since the distribution is quite complex and involves the unknown distribution of the error term, a bootstrap procedure is suggested and its validity is established. Simulation studies indicate that the test works well for most common choices of inefficiency distributions. The proposed test procedure is applied to a data set on electricity utility companies.
Related content
Access to resources
Recommend
Communications in Statistics: Theory and Methods, Vol. 43, Iss. 17, 2014-09 ,pp. :
A Nonparametric Test of the Predictive Regression Model
By Juhl Ted
Journal of Business & Economic Statistics, Vol. 32, Iss. 3, 2014-07 ,pp. :