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st: Question regarding deterministic frontier analysis
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st: Question regarding deterministic frontier analysis
Date
Wed, 28 Nov 2012 11:00:00 -0800 (PST)
Hi,
I am new to STATA 12 and am trying to model a deterministic cost frontier using a set of panel data. However, I know that STATA's "frontier" function is for stochastic frontier. Is it possible to model with just a u (technical inefficiency) term rather than also a v (random noise) term (i.e. all of the variation is captured as technical inefficiency)?
So far, I've tried
frontier lnvar1 lnvar2 lnvar3, dist(hnormal) cost
Iteration 0: log likelihood = 16.566731
Iteration 1: log likelihood = 16.600926
Iteration 2: log likelihood = 16.730963
Iteration 3: log likelihood = 16.747086
Iteration 4: log likelihood = 16.750521 (not concave)
Iteration 5: log likelihood = 16.755428
Iteration 6: log likelihood = 16.755633 (not concave)
Iteration 44: log likelihood = 16.757851 (not concave)
Iteration 45: log likelihood = 16.757851 (not concave)
Iteration 46: log likelihood = 16.757851 (not concave)
Iteration 47: log likelihood = 16.757851 (not concave)
Iteration 48: log likelihood = 16.757851
Stoc. frontier normal/half-normal model Number of obs = 15
Wald chi2(2) = 3672.72
Log likelihood = 16.757851 Prob > chi2 = 0.0000
------------------------------------------------------------------------------
lnvar1 | Coef. Std. Err. z P>|z| [95% Conf. Interval]
-------------+----------------------------------------------------------------
lnvar2 | .87537 .0853459 10.26 0.000 .7080951 1.042645
lnvar3 | .1496319 .0825894 1.81 0.070 -.0122404 .3115042
_cons | -5.472008 2.328865 -2.35 0.019 -10.0365 -.9075169
-------------+----------------------------------------------------------------
/lnsig2v | -5.072258 .3681989 -13.78 0.000 -5.793915 -4.350602
/lnsig2u | -17.64313 37500.48 -0.00 1.000 -73517.24 73481.95
-------------+----------------------------------------------------------------
sigma_v | .0791723 .0145756 .0551909 .113574
sigma_u | .0001475 2.765992 0 .
sigma2 | .0062683 .0023471 .0016681 .0108685
lambda | .0018632 2.767901 -5.423124 5.42685
------------------------------------------------------------------------------
Likelihood-ratio test of sigma_u=0: chibar2(01) = 0.00 Prob>=chibar2 = 1.000
Thank you,
Irene
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