A Bayesian non-parametric stochastic frontier model

Assaf, A. George, Tsionas, Mike, Kock, Florian, and Josiassen, Alexander (2021) A Bayesian non-parametric stochastic frontier model. Annals of Tourism Research, 87.

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Abstract

In this paper, we introduce a new Bayesian non-parametric stochastic frontier (SF) model that addresses the endogeneity problem and relaxes problematic assumptions regarding functional form, and distributional properties. The model can be seen as a competitor to DEA. We show how the model outperforms its parametric counterpart in all critical diagnostic tests. The application we use covers a unique sample of US hotels that operate within competitive clusters. We utilize the efficiency results obtained from this model to shed light on the extent to which performance spillover (i.e. agglomeration effects) may differ based on the varied characteristics of hotels within these clusters. We obtain interesting findings and discuss their implications for hotels contemplating future co-location strategies.

Item ID: 67668
Item Type: Article (Research - C1)
ISSN: 01607383
Copyright Information: © 2020 Elsevier Ltd. All rights reserved.
Date Deposited: 06 Apr 2021 01:15
FoR Codes: 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3508 Tourism > 350802 Tourism forecasting @ 100%
SEO Codes: 11 COMMERCIAL SERVICES AND TOURISM > 1104 Tourism services > 110401 Economic issues in tourism @ 100%
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