Subal C Kumbhakar
Biographic Data
| ID | 4423014 |
|---|---|
| NAME | Subal C Kumbhakar |
| GIVEN NAMES | Subal C |
| FAMILY NAME | Kumbhakar |
| SIGNATURE | KUMBHAKAR S C |
| AFFILIATIONS | Binghamton University |
| ORCID | 0000-0002-1366-379X |
| VERIFIED | Yes |
| TOTAL WORKS | 31 |
| TOTAL CITATIONS | 27 |
| AUTHOR COUNT | 30 |
| EDITOR COUNT | 1 |
| FIRST PUBLICATION YEAR | 1987 |
| LATEST PUBLICATION YEAR | 2025 |
| H-INDEX | 2 |
The effect of funding for disadvantaged students on academic underachievement
We estimate the effect of school funding for disadvantaged students on academic underachievement in primary education. For this purpose, we exploit a policy in Belgium that granted additional funding for schools with a share of disadvantaged students of at least 10%. Combining stochastic frontier analysis (a method to measure efficiency) with regression discontinuity design, we find that while additional funding does not affect achievement, it do…
Some reflections on technical and allocative inefficiency modeling
This paper offers a concise overview of the existing literature on efficiency and productivity, focusing on stochastic frontier models. The emphasis is placed on technical inefficiency (TI), defined as the failure to produce the maximum output given inputs, and allocative inefficiency (AI), arising from non-optimal input utilization. The primary objective of this brief survey is to assist readers in grasping the fundamental concepts of modelling …
Economic impacts of tourism demand on the European food and accommodation industry
Sustainability strategies have become central topics in the literature on tourism development, given the significant increase in tourism demand in Europe. This study examines the economic (cost) impact of increased tourism demand on the European Food and Accommodation Industry. We employed three distinct models — pooled linear regression, flexible nonparametric, and semiparametric smooth coefficients — using data spanning European countries from …
Revisiting the Productivity Effects of Public Capital
Productivity, Panel Data and Applied Econometrics
Are operationally efficient firms greener
A new semiparametric stochastic frontier model
The role of pesticides and fertilizers in Czech cereal output and TFP growth
A flexible stochastic production frontier model with panel data
We propose a flexible stochastic production frontier model with fixed effects for the panel data in which the semiparametric frontier is additive with bivariate interactions. To avoid potential misspecification and/or “wrong skew problem” due to distributional assumptions, we model the conditional mean of the inefficiency to depend on environmental variables and to be known up to a vector of parameters. We propose a difference‐based estimator for…
Crime under-reporting in Bogotá
Is output growth of Chinese manufacturing firms input or productivity driven? A flexible production function approach with endogenous inputs
Green innovation in Norwegian firms
Indirect inference estimation of stochastic production frontier models with skew-normal noise
Productivity and Performance
In this paper we propose a single‐step generalized method of moments (GMM) approach to estimate a production function with multiple quasi‐fixed and variable inputs as well as productivity and inefficiency. Our approach relies on the system consisting of the production function, the first‐order conditions of expected profit maximization with respect to the variable inputs, as well as general formulations for dynamic productivity and inefficiency. …
Panel Stochastic Frontier Model With Endogenous Inputs and Correlated Random Components
In this article, we consider a panel stochastic frontier model in which the composite error term εit has four components, that is, εit=τi−ηi+vit−uit, where ηi and uit are persistent and transient inefficiency components, τi consists of the random firm effects and vit is the random noise. Two distinguishing features of the proposed model are (i) the inputs are allowed to be correlated with one or more of the error components in the production func…
Estimation of staff use efficiency
We analyze the extent to which hospitality firms overuse staff using a production function model which considers firm heterogeneity and accounts for environmental variables in staff use. We decompose overall staff use inefficiency into transient and persistent inefficiency. To do this, we employ a state-of-the-art stochastic frontier model, which is estimated using daily data on 94 Norwegian hospitality firms from 2010 to 2014. The environmental …
Estimation of firm productivity in the presence of spillovers and common shocks
Persistent and transient inefficiency in adult education
This paper evaluates the inefficiency of adult education programs. Using an advanced four-component stochastic frontier model on Belgian adult education data, we distinguish between persistent and transient inefficiency of adult education programs. Whereas persistent inefficiency is structural and difficult to tackle because of its time-invariant nature, transient inefficiency can be eliminated somewhat easily without a major structural change. T…
Weather and population size effects on water and sewer treatment costs
Excess capacity, production technology and technical inefficiency in hospitality sector
Estimation of firm‐level productivity in the presence of exports
Motivated by the long‐standing interest of economists in understanding the nexus between firm productivity and export behavior, this paper develops a novel structural framework for control‐function‐based nonparametric identification of the gross production function and latent firm productivity in the presence of endogenous export opportunities that is robust to recent unidentification critiques of proxy estimators. We provide a workable identific…
Handbook of Production Economics
Semiparametric Smooth Coefficient Stochastic Frontier Model With Panel Data
We investigate the semiparametric smooth coefficient stochastic frontier model for panel data in which the distribution of the composite error term is assumed to be of known form but depends on some environmental variables. We propose multi-step estimators for the smooth coefficient functions as well as the parameters of the distribution of the composite error term and obtain their asymptotic properties. The Monte Carlo study demonstrates that th…
Stochastic Frontier Analysis
Modern textbook presentations of production economics typically treat producers as successful optimizers. Conventional econometric practice has generally followed this paradigm, and least squares based regression techniques have been used to estimate production, cost, profit and other functions. In such a framework deviations from maximum output, from minimum cost and cost minimizing input demands, and from maximum profit and profit maximizing ou…
The Slack Banker Dances
Stochastic Frontier Analysis
Modern textbook presentations of production economics typically treat producers as successful optimizers. Conventional econometric practice has generally followed this paradigm, and least squares based regression techniques have been used to estimate production, cost, profit and other functions. In such a framework deviations from maximum output, from minimum cost and cost minimizing input demands, and from maximum profit and profit maximizing ou…
The Slack Banker Dances
Weather and population size effects on water and sewer treatment costs
Production Frontiers and Panel Data
In this article, the appropriateness of inefficiency measures obtained directly from the production function as in Schmidt and Sickles (1984) is examined relative to those provided by (a) the cost function aproach, (b) Klein's approach, and (c) the iterative SUR technique. Efficiency rankings yielded by different methods are also compared and tested
Estimation of Technical Efficiency Using Flexible Functional Form and Panel Data
This article presents an econometric model capable of accommodating a nonradial measure of input-specific technical inefficiency and suggests an estimation technique that reduces dependency on distributional assumptions on inefficiency. It also makes use of the demand system derived from a flexible cost function and imposes concavity restrictions as required by economic theory. Panel data on 12 Finnish foundry plants are used to estimate technica…
A Study of Economic Efficiency of Utah Dairy Farmers
Subal C. Kumbhakar, Basudeb Biswas, DeeVon Bailey, A Study of Economic Efficiency of Utah Dairy Farmers: A System Approach, The Review of Economics and Statistics, Vol. 71, No. 4 (Nov., 1989), pp. 595-604
A Generalized Production Frontier Approach for Estimating Determinants of Inefficiency in U.S. Dairy Farms
This article investigates farm-level efficiency of U.S. dairy farmers by estimating their technical and allocative efficiency. Technical inefficiency is assumed to be composed of a deterministic component that is a function of some farm-specific characteristics and a random component. By doing this we extend the stochastic frontier methodology in which determinants of technicial inefficiency are explicitly introduced in the model. Given the input…
Price Distortions and Resource-Use Efficiency in Indian Agriculture
Subal C. Kumbhakar, Arunava Bhattacharyya, Price Distortions and Resource-Use Efficiency in Indian Agriculture: A Restricted Profit Function Approach, The Review of Economics and Statistics, Vol. 74, No. 2 (May, 1992), pp. 231-239
Short-Run Returns to Scale, Farm-Size, and Economic Efficiency
This paper analyzes the effects of returns to scale, farm-size, technical, allocative, and scale inefficiencies on the profitability of Utah dairy farms. It derives the conditions necessary to compare the profitability of farms within and between different size classifications as small, medium, and large. Some comparative static results regarding increases in input prices and a decrease or withdrawal of price support on profitability of small, me…
The Slack Banker Dances
Stochastic Frontier Analysis
Modern textbook presentations of production economics typically treat producers as successful optimizers. Conventional econometric practice has generally followed this paradigm, and least squares based regression techniques have been used to estimate production, cost, profit and other functions. In such a framework deviations from maximum output, from minimum cost and cost minimizing input demands, and from maximum profit and profit maximizing ou…
Semiparametric Smooth Coefficient Stochastic Frontier Model With Panel Data
We investigate the semiparametric smooth coefficient stochastic frontier model for panel data in which the distribution of the composite error term is assumed to be of known form but depends on some environmental variables. We propose multi-step estimators for the smooth coefficient functions as well as the parameters of the distribution of the composite error term and obtain their asymptotic properties. The Monte Carlo study demonstrates that th…
Estimation of firm‐level productivity in the presence of exports
Motivated by the long‐standing interest of economists in understanding the nexus between firm productivity and export behavior, this paper develops a novel structural framework for control‐function‐based nonparametric identification of the gross production function and latent firm productivity in the presence of endogenous export opportunities that is robust to recent unidentification critiques of proxy estimators. We provide a workable identific…
Handbook of Production Economics
Estimation of firm productivity in the presence of spillovers and common shocks
Persistent and transient inefficiency in adult education
This paper evaluates the inefficiency of adult education programs. Using an advanced four-component stochastic frontier model on Belgian adult education data, we distinguish between persistent and transient inefficiency of adult education programs. Whereas persistent inefficiency is structural and difficult to tackle because of its time-invariant nature, transient inefficiency can be eliminated somewhat easily without a major structural change. T…
Weather and population size effects on water and sewer treatment costs
Excess capacity, production technology and technical inefficiency in hospitality sector
Estimation of staff use efficiency
We analyze the extent to which hospitality firms overuse staff using a production function model which considers firm heterogeneity and accounts for environmental variables in staff use. We decompose overall staff use inefficiency into transient and persistent inefficiency. To do this, we employ a state-of-the-art stochastic frontier model, which is estimated using daily data on 94 Norwegian hospitality firms from 2010 to 2014. The environmental …
Indirect inference estimation of stochastic production frontier models with skew-normal noise
Productivity and Performance
In this paper we propose a single‐step generalized method of moments (GMM) approach to estimate a production function with multiple quasi‐fixed and variable inputs as well as productivity and inefficiency. Our approach relies on the system consisting of the production function, the first‐order conditions of expected profit maximization with respect to the variable inputs, as well as general formulations for dynamic productivity and inefficiency. …
Panel Stochastic Frontier Model With Endogenous Inputs and Correlated Random Components
In this article, we consider a panel stochastic frontier model in which the composite error term εit has four components, that is, εit=τi−ηi+vit−uit, where ηi and uit are persistent and transient inefficiency components, τi consists of the random firm effects and vit is the random noise. Two distinguishing features of the proposed model are (i) the inputs are allowed to be correlated with one or more of the error components in the production func…
A flexible stochastic production frontier model with panel data
We propose a flexible stochastic production frontier model with fixed effects for the panel data in which the semiparametric frontier is additive with bivariate interactions. To avoid potential misspecification and/or “wrong skew problem” due to distributional assumptions, we model the conditional mean of the inefficiency to depend on environmental variables and to be known up to a vector of parameters. We propose a difference‐based estimator for…
Crime under-reporting in Bogotá
Is output growth of Chinese manufacturing firms input or productivity driven? A flexible production function approach with endogenous inputs
Green innovation in Norwegian firms
The effect of funding for disadvantaged students on academic underachievement
We estimate the effect of school funding for disadvantaged students on academic underachievement in primary education. For this purpose, we exploit a policy in Belgium that granted additional funding for schools with a share of disadvantaged students of at least 10%. Combining stochastic frontier analysis (a method to measure efficiency) with regression discontinuity design, we find that while additional funding does not affect achievement, it do…
Some reflections on technical and allocative inefficiency modeling
This paper offers a concise overview of the existing literature on efficiency and productivity, focusing on stochastic frontier models. The emphasis is placed on technical inefficiency (TI), defined as the failure to produce the maximum output given inputs, and allocative inefficiency (AI), arising from non-optimal input utilization. The primary objective of this brief survey is to assist readers in grasping the fundamental concepts of modelling …
Economics (27 works) · Econometrics (21 works) · Efficiency Analysis Using DEA (15 works) · Microeconomics (15 works) · Economic Growth and Productivity (11 works) · Geography (11 works) · Inefficiency (11 works) · Mathematics (11 works) · Global trade and economics (9 works) · Business (8 works)