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Main Authors: Centorrino, Samuele, Parmeter, Christopher F.
Format: Preprint
Published: 2026
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Online Access:https://arxiv.org/abs/2604.19693
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author Centorrino, Samuele
Parmeter, Christopher F.
author_facet Centorrino, Samuele
Parmeter, Christopher F.
contents Causal inference methods (instrumental variables, difference-in-differences, regression discontinuity, etc.) are primary tools used across many social science milieus. One area where their application has lagged however, is in the study of productivity and efficiency. A main reason for this is that the nature of the stochastic frontier model does not immediately lend itself to a causal framework when interest hinges on an error component of the model. This paper reviews the nascent literature on attempts to merge the stochastic frontier literature with causal inference methods. We discuss modeling approaches and empirical issues that are likely to be relevant for applied researchers in this area. This review shows how this model can be easily put within the confines of causal analysis, reviews existing work that has already made inroads in this area, addresses challenges that have yet to be met and discusses core findings.
format Preprint
id arxiv_https___arxiv_org_abs_2604_19693
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle Recent Advances in Causal Analysis of the Stochastic Frontier Model
Centorrino, Samuele
Parmeter, Christopher F.
Econometrics
Causal inference methods (instrumental variables, difference-in-differences, regression discontinuity, etc.) are primary tools used across many social science milieus. One area where their application has lagged however, is in the study of productivity and efficiency. A main reason for this is that the nature of the stochastic frontier model does not immediately lend itself to a causal framework when interest hinges on an error component of the model. This paper reviews the nascent literature on attempts to merge the stochastic frontier literature with causal inference methods. We discuss modeling approaches and empirical issues that are likely to be relevant for applied researchers in this area. This review shows how this model can be easily put within the confines of causal analysis, reviews existing work that has already made inroads in this area, addresses challenges that have yet to be met and discusses core findings.
title Recent Advances in Causal Analysis of the Stochastic Frontier Model
topic Econometrics
url https://arxiv.org/abs/2604.19693