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st: FW: Lambda in Frontier when using uhet


From   "Huerta, Tim" <[email protected]>
To   "[email protected]" <[email protected]>
Subject   st: FW: Lambda in Frontier when using uhet
Date   Sun, 6 May 2012 20:13:34 -0500

According to Rosko - In developing a preferred model the following
decisions had
to be made: (1) should OLS or SFA be used; (2) what should be the
structural form of the cost function; (3) what theoretical distribution
should the composed error follow; and (4) should inefficiency-effects
variables be included?

It would seem that when someone is performing an SFE analysis in Stata and
variables are loaded into the uhet, the diagnostic data to answer the
first question isn't provided. In contrast when the uhet is not included,
sigma_v, sigma_u etc. are provided - allowing for the researcher to answer
q1.

Can someone tell me why including variables in the uhet causes the
information to disappear?  Can someone tell me how I might test hypothesis
1,­ or do I need to move to LIMDEP?

-------------+-------------------------------------------------------------
---
    /lnsig2v |  -7.674071    .073728  -104.09   0.000    -7.818575
-7.529567
    /lnsig2u |  -7.653044   .1933399   -39.58   0.000    -8.031983
-7.274105
-------------+-------------------------------------------------------------
---
     sigma_v |   .0215574   .0007947                      .0200548
.0231726
     sigma_u |   .0217853    .002106                      .0180251
.0263298
      sigma2 |   .0009393   .0000673                      .0008074
.0010712
      lambda |   1.010569   .0027863                      1.005108
1.01603
---------------------------------------------------------------------------
---
Likelihood-ratio test of sigma_u=0: chibar2(01) = 15.03  Prob>=chibar2 =
0.000

Vs…

-------------+-------------------------------------------------------------
---
lnsig2v      |
       _cons |  -7.329417   .0372094  -196.98   0.000    -7.402346
-7.256488
-------------+-------------------------------------------------------------
---
lnsig2u      |
        VAR1 |   4.665001   6.030464     0.77   0.439    -7.154491
16.48449
        VAR2 |  -.6634111   1.468405    -0.45   0.651    -3.541432
2.21461
        VAR3 |   .3042444   .3897992     0.78   0.435     -.459748
1.068237
        VAR4 |   21.52495   16.14052     1.33   0.182    -10.10989
53.1598
        VAR5 |  -.2151711   .6890228    -0.31   0.755    -1.565631
1.135289
       _cons |  -30.13224   16.31409    -1.85   0.065    -62.10727
1.842788
-------------+-------------------------------------------------------------
---
     sigma_v |   .0256116   .0004765                      .0246945
.0265628
---------------------------------------------------------------------------
---

. 


Thanks in advance.

Tim
--

Timothy R. Huerta, Ph.D.
 Assistant Professor, Rawls College of Business, Texas Tech University
 Texas Tech University
 Rawls College of Business
 15th and Flint
 Lubbock, TX 79409


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