Stochastic Frontiers and Asymmetric Information Models |
| |
Authors: | Gagnepain Philippe Ivaldi Marc |
| |
Institution: | (1) Departamento de Economía, Universidad Carlos III, Madrid, Spain;(2) GREMAQ-IDEI and Ecole des Hautes Etudes en Sciences Sociales, Toulouse, France |
| |
Abstract: | This article is an attempt to shed light on the specification and identification of inefficiency in stochastic frontiers. We consider the case of a regulated firm or industry. Applying a simple principal-agent framework that accounts for informational asymmetries to this context, we derive the associated production and cost frontiers. Noticeably this approach yields a decomposition of inefficiency into two components: The first component is a pure random term while the second component depends on the unobservable actions taken by the agent (the firm). This result provides a theoretical foundation to the usual specification applied in the literature on stochastic frontiers. An application to a panel data set of French urban transport networks serves as an illustration. |
| |
Keywords: | costs and production stochastic frontiers asymmetric information technical inefficiency effort regulation test of specification urban transport |
本文献已被 SpringerLink 等数据库收录! |