Dear Statalist-members,
I estimated a time-varying panel data cost frontier model with the
command "xtfrontier depvar [indepvars] [if] [in] [weight] , tvd". After
the estimation I wanted to get the efficiency scores with the command
"predict efficiency, te". Now I wonder why this estimates are not
bounded above 1, because they range from 1.439743 to 6.81706. I thought
the most efficient unit should get a 1 and all other (more inefficient)
units should get a number higher than 1. Can anybody explain this to
me?
Thank you for your help,
Alex
Zentrum für Europäische Wirtschaftsforschung GmbH (ZEW)
Centre for European Economic Research
L 7, 1 · 68161 Mannheim · Germany
Sitz der Gesellschaft: Mannheim · Amtsgericht Mannheim HRB 6554
Aufsichtsratsvorsitzender: Finanzminister Gerhard Stratthaus MdL
Geschaeftsfuehrer: Prof. Dr. Dr. h.c. mult. Wolfgang Franz, Thomas Kohl
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