Working paper

A gamma-moment approach to monotonic boundaries estimation

Abdelaati Daouia, Stéphane Girard, and Armelle Guillou

Abstract

The estimation of optimal support boundaries under the monotonicity constraint is relatively unexplored and still in full development. This article examines a new extreme-value based model which provides a valid alternative for completely envelopment frontier models that often super from lack of precision, and for purely stochastic ones that are known to be sensitive to model misspecification. We provide different motivating applications including the estimation of the minimal cost in production activity and the assessment of the reliability of nuclear reactors.

Keywords

cost function; edge data; extreme-value index; free disposal hull; moment frontier;

JEL codes

  • C13: Estimation: General
  • C14: Semiparametric and Nonparametric Methods: General
  • D20: General

Replaced by

Abdelaati Daouia, Stéphane Girard, and Armelle Guillou, A gamma-moment approach to monotonic boundary estimation, Journal of Econometrics, vol. 178, n. 2, February 2014, pp. 727–740.

See also

Published in

TSE Working Paper, n. 13-411, May 2013