Dear STATALISTERS,
I want to do some x-inefficiency analysis using
translog cost function with several homogeneity and
symmetry restrictions. I searched through google and
got no STATA example. Did anyone who did it before
with STATA, or do you know where i can find good STATA
examples other than those poor examples in STATA
manuals?
When I did it with only 1400 observations using
"frontier" command, STATA gave me the following error
message even though I set my memory to 500m:
"initial values not feasible
r(1400);
".
It seems to me that in STATA, the varaible "te"
generated by cost function is NOT technical
efficiency. Instead, its inverse "1/te" should be
technical efficiency. Does anybody has a clear idea on
that?
frontier y x1-xk, cost
predict te, te
THANK YOU and HAVE A GOOD WEEKEND!
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