RE: Antw: Re: st: frontier for Batesse/Coelli (1995)

["Linda, X Zhu" <lx_zhu@hotmail.com>]

Hi Nicola, Alexander and all,

It is really a pity that Stata does not include the Battesse and Coelli 
(1995) model. Actually I have tried to use Stata instead of FRONTIER for 
stochastic frontier analysis. It seems that if I include the inefficiency 
effects model in Stata, then I am not allowed to choose the truncated normal 
distribution error term for technical inefficiency but only the normal/half 
normal distribution. So I agree that FRONTIER 41 is too 'simple'. Although 
it does provide the estimates for the frontier function and technical 
efficiency, for any more useful information such as TE by year, by region, 
or by countries and the significance of the estimation of the coefficients, 
you have to rely on other software again. Basically, I am running between 
two software's. For data manipulation, I use Stata, but for technical 
efficiency analysis, I use FRONTIER using the data produced by Stata. Does 
anybody find a good way to move the results from FRONTIER to Stata? Thanks!
Best regards,
Linda


> From: "Alexander Kalb" <kalb@zew.de>
> Reply-To: statalist@hsphsun2.harvard.edu
> To: <statalist@hsphsun2.harvard.edu>
> Subject: Antw: Re: st: frontier for Batesse/Coelli (1995)
> Date: Mon, 23 Apr 2007 09:00:15 +0200
>
> Thank you, Nicola. I am working with the package FRONTIER (developed by 
> Coelli (1996)) yet. But this is a very "simple" program, if you want to 
> test restrictions, you have to calculate it on your own. If the Battese and 
> Coelli (1995) model would be implemented in Stata such things would be much 
> more easier therefore I asked whether it is implemented in Stata.
>
> Alexander
>
> "Battese G.E. and T.J. Coelli (1995), A Model for Technical Efficiency 
> Effects in a Stochastic Frontier Production Function with Panel Data, 
> Empirical Economics, 20, 325-332."
>
> "Coelli T.J. (1996), A Guide to FRONTIER version 4.1: A Computer Program 
> for Stochastic Frontier Production and Cost Function Estimation, CEPA 
> Working papers, No. 7/96."
>
> >>> <nicola.baldini2@unibo.it> 21.04.2007 12:23 >>>
> I strongly suggest you to move to Frontier, a free package by Coelli (not 
> sure if it is still around there: 
> http://www.une.edu.au/econometrics/cepa.htm).
> As far as I know, Battese (note the spelling!) and Coelli (1995) is “A 
> Model for Technical Inefficiency Effects in a Stochastic Frontier 
> Production Function for Panel Data”, Empirical Economics, 20, 325-332; 
> thus it is a model for panel data.
> The panel command for frontier analysis is -xtfrontier-, where none of the 
> options you described exist (they are only in the cross-sectional command), 
> and where surprisingly there are no options for the Battese/Coelli (1995)
> approach.
> However, option cm resembles a modified Battese/Coelli (1995) approach for 
> cross-sectional data more than option uhet. In fact, in the Battese/Coelli 
> (1995) approach, it is the mean of the technical inefficiency component 
> that  is modeled as a linear function of some covariates, not the variance. 
> Moreover, the original Battese/Coelli (1995) approach uses a truncated 
> normal distribution for the technical inefficiency, and Stata prevents you 
> from selecting option uhet with a truncated normal distribution.
>
> Nicola
>
> At 02.33 21/04/2007 -0400, "Alexander Kalb" wrote:
> >Hello,
> >
> >I want to estimate a stochastic frontier with the Batesse/Coelli
> >(1995)
> >approach. Now I wanted to ask if this is implemented in Stata. In the
> >Statalist I  read that one can use the "uhet"-option or the
> >"cm"-option.
> >Does one of these two options represent the Batesse/Coelli (1995)
> >approach and if this should be the case which is the right one? Thank
> >you!
>
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