STOCHASTIC FRONTIER MODELS BY COPULAS AND AN APPLICATION


Najjari V., BAL H. , Ozturk F., ALP İ.

UNIVERSITY POLITEHNICA OF BUCHAREST SCIENTIFIC BULLETIN-SERIES A-APPLIED MATHEMATICS AND PHYSICS, vol.78, no.1, pp.31-41, 2016 (Journal Indexed in SCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 78 Issue: 1
  • Publication Date: 2016
  • Title of Journal : UNIVERSITY POLITEHNICA OF BUCHAREST SCIENTIFIC BULLETIN-SERIES A-APPLIED MATHEMATICS AND PHYSICS
  • Page Numbers: pp.31-41

Abstract

The main endeavor in this study is to use copulas in the stochastic frontier analysis (SFA) to estimate production frontier and also technical efficiency of DMUs. After presenting theorical discussion using copulas in SFA, we finalize our study by providing an application on real data set. We compare the yielded efficiency scores by using copulas with results of the standard SFA and also CCR and BCC models. We concentrate on several Archimedean families and specially three families which were newly presented to the literature. These new families have trigonometric and hyperbolic generators and they are more flexible in modeling dependence structures.