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February 23, 2023

Graduate Center Masterclasses

Endogeneity of Inefficiency and Spatial Effects


February 23, 2023
Lecture 1+2: 10:00 am to 1:15 pm
Lecture 3+4: 2:15 pm to 5:30 pm


Elinor Ostrom Hall
DIW Berlin
Mohrenstr. 58
10117 Berlin


Subal Kumbhakar


  1.  A quick review of the panel SF models (True Random effects, 4 component models)
  2. Address endogeneity of regressors
    (i) a two-step approach sing expect profit max framework
    (ii) A single-step approach using IV
  3. Spatial SF production models with dependence via
    (i) output
    (ii) Input(s)
    (iii) noise term
    (iv) inefficiency
  4. Examples of spatial models that I plan to go through
    (i) crime underreporting in Bogota, Colombia
    (ii) markup pricing (sky lifting, manufacturing)

About the instructor:
Subal Kumbhakar’s main area of research is applied microeconomics with a focus on estimation of efficiency in production. He uses production, cost, and profit function approaches to estimate economic efficiency. He has formulated a variety of panel data models to measure efficiency, which he has applied to a wide variety of topics covering agriculture, manufacturing, banking, airlines, electricity generation/distribution, public sector enterprises, etc. His recent works include environmental efficiency, modeling undesirable outputs. Some of his other research areas include: corruption and economic growth, foreign direct investment, adverse selection and moral hazards, risk and risk preference in agriculture and aquaculture. His current research includes semi and nonparametric panel data models with and without efficiency.