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st: SFA analysis
Hi there,
I have a fairly basic question as I am learning Stata and the SFA
method.
I want to use a Cobb-Douglas specification model to estimate the
production frontier for household farms. I am interested in modeling
inefficiency as a function of also other covariates besides the
conventional production factors (land, labor, capital).
However, I am not sure I am following the steps correctly. First I
estimated a half-normal frontier function (y function of land, labor,
capital). However, do I have use a truncated normal distribution if I
want to include other covariates (i.e. age, education) (i.e. frontier
ln_land ln_labor ln_capital, dist(normal) cm(list_of_covariates))?
Also, is it normal for the results of rubust regression to be very
different from this last run?
Many thanks.
Georgeta
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