Hi,
I am attempting to estimate a stochastic production frontier and te model
using STATA. It is my first time estimating such a model. My SPF variables
are dv= ln production (coffee yield in kgs) ivs= (ln) fertiliser, labor,
irrigation, pesticides, irrigation frequency and plot level operating
capital. Technical efficiency determinants are 1. whether the farmer is
cropping coffee only 2. farm size 3. tree age and tree age^2 4. soil type
5. ln total wet season rainfall 6. some socio-eco characteristics.
My problem is that I am unclear how to set up the correct model in stata.
Specifically, I am unclear whether I include all the ivs - both spf and te
variables in the depvar list or whether I include only the spf variables
and then include the te variables following uhet. I am also unclear
whether I should include lntotalrainfall in uhet or vhet. Pretty basic
question I know. If someone could send an example with a small dataset
that would be optimal.
Many thanks,
Jeremy
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