Daouia, Abdelaati, Florens, Jean-Pierre and Simar, Léopold (2021) Robustified expected maximum production frontiers. Econometric Theory, vol. 37 (n° 2). pp. 1-46.

This is the latest version of this item.

[thumbnail of robustified.pdf]
Preview
Text
Download (4MB) | Preview
Identification Number : 10.1017/S0266466620000171

Abstract

The aim of this paper is to construct a robust nonparametric estimator for the production frontier. We study this problem under a regression model with one-sided errors where the regression function defines the achievable maximum output, for a given level of inputs-usage, and the regression error defines the inefficiency term. The main tool is a concept of partial regression boundary defined as a special probability-weighted moment. This concept motivates a robustified unconditional alternative to the pioneering class of nonparametric conditional expected maximum production functions. We prove that both the resulting benchmark partial frontier and its estimator share the desirable monotonicity of the true full frontier. We derive the asymptotic properties of the partial and full frontier estimators, and unravel their behavior from a robustness theory point of view. We provide numerical illustrations and Monte Carlo evidence that the presented concept of unconditional expected maximum production functions is more efficient and reliable in filtering out noise than the original conditional version. The methodology is very easy and fast to implement. Its usefulness is discussed through two concrete datasets from the sector of Delivery Services, where outliers are likely to affect the traditional conditional approach.

Item Type: Article
Language: English
Date: April 2021
Refereed: Yes
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 25 Mar 2020 08:27
Last Modified: 01 Mar 2023 15:17
OAI Identifier: oai:tse-fr.eu:124134
URI: https://publications.ut-capitole.fr/id/eprint/34205

Available Versions of this Item

View Item

Downloads

Downloads per month over past year