Summary: | This study investigated the technical efficiency and robustness of efficiency score rankings across two distributional assumptions for Cobb-Douglas production frontier model for 20 Malaysian construction companies over the period of 2013 to 2017. Stochastic frontier of Cobb-Douglas production function and maximum likelihood estimation technique applied to estimate the parameters with half-normal and truncated-normal distributions by a model with both time-variant and time-invariant inefficiency effects. Based on the likelihood ratio test, deviations from the efficient frontiers of function mainly recognized technical inefficiency, with a half-normal distribution for time-invariant inefficiency effect. This study shows that time did not contribute to efficiency performance over the short-investigated period. The Spearman rank correlation results of this study show that both distribution ranking for time-invariant inefficiency effect have a strong and significant relationship, while their rankings are quite consistent to distributional choice. The results also show that both efficiency scores are also diverse © 2020. ASM Science Journal.All Rights Reserved.
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