Frontier quantile model using a generalized class of skewed distributions

Abstract

© 2017 American Scientific Publishers All rights reserved. One of the classical ways to predict manufacturing production is to use Stochastic frontier model. At present, the most accurate predictions obtained by using this model involve the use of quantiles and asymmetric Laplace distributions for the noise and inefficiency. In this paper, we analyze the possibility of using more general skew distributions. We show that skew normal distributions lead to better predictions.