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Modeling dependence in two-tier stochastic frontier models
Journal of Productivity Analysis ( IF 2.500 ) Pub Date : 2021-07-13 , DOI: 10.1007/s11123-021-00611-2
Alecos Papadopoulos 1 , Christopher F. Parmeter 2 , Subal C. Kumbhakar 3
Affiliation  

The two-tier stochastic frontier model has seen widespread application across a range of social science domains. It is particularly useful in examining bilateral exchanges where unobserved side-specific information exists on both sides of the transaction. These buyer and seller specific informational aspects offer opportunities to extract surplus from the other side of the market, in combination also with uneven relative bargaining power. Currently, this model is hindered by the fact that identification and estimation relies on the potentially restrictive assumption that these factors are statistically independent. We present three different models for empirical application that allow for varying degrees of dependence across these latent informational/bargaining factors.



中文翻译:

两层随机前沿模型中的建模依赖

两层随机前沿模型已在一系列社会科学领域得到广泛应用。它在检查双边交易时特别有用,因为交易双方都存在未观察到的特定信息。这些买方和卖方特定的信息方面提供了从市场的另一端榨取剩余的机会,同时还与不均衡的相对议价能力相结合。目前,该模型受到以下事实的阻碍:识别和估计依赖于这些因素在统计上独立的潜在限制性假设。我们提出了三种不同的经验应用模型,这些模型允许对这些潜在信息/讨价还价因素的不同程度的依赖。

更新日期:2021-07-13
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