This paper concentrates on negatively skewed one-sided distributions as an explanation of the occurrence of positive (negative) skewness in the case of stochastic production (cost) frontier analysis. It takes as an example the binomial distribution that can have negative or positive skew and derives the method-of-moments estimators.

Binomial distribution, Cost frontier, Production frontier, Skewness
dx.doi.org/10.1016/S0165-1765(02)00119-2, hdl.handle.net/1765/61682
Economics Letters
Erasmus Research Institute of Management

Carree, M.A. (2002). Technological inefficiency and the skewness of the error component in stochastic frontier analysis. Economics Letters, 77(1), 101–107. doi:10.1016/S0165-1765(02)00119-2