DOES ECONOMIC FREEDOM AFFECT THE PRODUCTION FRONTIER? A SEMIPARAMETRIC APPROACH WITH PANEL DATA.

This paper applies a multistep semiparametric stochastic production frontier estimator to investigate the effects of economic freedom (EF) on the production frontier and technical efficiency. We allow output elasticities and technical efficiency to depend on EF, estimate a smooth coefficient stochas...

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Publicado en:Economic Inquiry Vol. 56; no. 2; pp. 1380 - 1396
Autores principales: Zhang, Fan, Hall, Joshua, Yao, Feng
Formato: Artículo
Publicado: Wiley-Blackwell Apr2018
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: DOES ECONOMIC FREEDOM AFFECT THE PRODUCTION FRONTIER? A SEMIPARAMETRIC APPROACH WITH PANEL DATA.
      aug:
        au:
          Zhang, Fan
          Hall, Joshua
          Yao, Feng
        affil:
          Assistant Professor, Department of Business Management, Ripon College, Ripon, WI 54971
          Associate Professor, Department of Economics, West Virginia University, Morgantown, WV 26506
      su:
        Marginal productivity
        Human capital
        Economic liberty
        Production possibility curve
        Capital
      sug:
        subj:
          Marginal productivity
          Human capital
          Economic liberty
          Production possibility curve
          Capital
      ab: This paper applies a multistep semiparametric stochastic production frontier estimator to investigate the effects of economic freedom (EF) on the production frontier and technical efficiency. We allow output elasticities and technical efficiency to depend on EF, estimate a smooth coefficient stochastic production frontier, and compare with parametric alternatives. Our results highlight the flexibility of semiparametric approaches as we find parametric approaches are too restrictive in estimating marginal productivity. Output elasticities of labor, human capital, and physical capital vary with the level of EF and our average efficiency estimates are at least 20% higher than those obtained from parametric counterparts. (<italic>JEL</italic> C14, O43)
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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