One-Step and Two-Step Estimation of the Effects of Exogenous Variables on Technical Efficiency Levels

By Hung-Jen Wang, P. Schmidt. 2002

1,069 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Management Science and Operations Research

View Paper: https://www.semanticscholar.org/paper/0ba29f8abcbf8683e8286f2af42fa42ac20b1c6f

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In Economics and Econometrics

In Management Science and Operations Research

Citations in the corpus

Outreach and Efficiency of Microfinance Institutions (2011, background): “Wang and Schmidt (2002) show that a two-step approach suffers from the assumption that the efficiency term is independent and identically truncated, normally distributed in the first step, while in the second step the efficiency terms are assumed to be normally distributed and dependent on the…”
Cost Efficiency in Regional Bus Companies: An Application of Alternative Stochastic Frontier Models (2006, background): “3 For the advantages of single stage models, see Wang and Schmidt (2002). single indicators.”
Consistent inference in fixed-effects stochastic frontier models (2017, background): “Furthermore, they are also important from the empirical perspective because they allow to test specific hypotheses of interest and policy implications, avoiding biased two-step procedures (Wang & Schmidt, 2002).”
Interpreting and Testing the Scaling Property in Models where Inefficiency Depends on Firm Characteristics (2006, background): “4. As noted by Wang and Schmidt (2002) , the interpretation of δ does not depend on the”
Likelihood ratio tests for model selection of stochastic frontier models (2010, methodology): “When d = c in the GEM setting, one obtains the SF model with the scaling property suggested by Wang and Schmidt (2002) .”
One-stage estimation of the effects of operational conditions and practices on productive performance: asymptotically normal and efficient, root-n consistent StoNEZD method (2011, background): “Following Wang and Schmidt (2002), we assume that the contextual variables are dependent on the input levels, and are generated according to equation ( ) 21 3 1z x wρ ρ= − + − (9) where parameter ρ is some pre-specified correlation coefficient and w is an independent random number drawn from Uni[…”
University Efficiency: A Comparison and Consolidation of Results from Stochastic and Non‐stochastic Methods (2006, neutral): “Wang and Schmidt ( 2002 ) compare one‐step and two‐step procedures for a stochastic model and found the two‐step procedure led to biased results, and therefore recommend against that approach.”
Efficiency and productivity (2008, neutral): “Later Wang and Schmidt (2002) analyzed alternative specifications for u i (z i ;γ) in the single-stage approach; for example, either the mean or the variance of the distribution being truncated below at zero can be made a function of z i .”