Re: st: Calculating Technical efficiency

[Nabin Kafle <nkafle89@gmail.com>]

"Coelli, T., Perelman, S., Romano, E., 1999. Accounting for
environmental influences in stochastic frontier models: with
application to international airlines. Journal of Productivity
Analysis 11, 251-273" describes a process of estimating the gross
efficiency.

On Mon, Jul 8, 2013 at 9:39 AM, Nabin Kafle <nkafle89@gmail.com> wrote:
> Well that is the case when the exogeneous variables are considered to affect
> the efficiency. I want the gross efficiency when exogeneous variable are
> assumed to affect the shape of production texhnology.
>
>
> On Monday, July 8, 2013, Federico Belotti wrote:
>>
>> Assuming that you are using the official -frontier- command for
>> cross-sectional SF models through
>>
>> frontier y x, dist(t) cm(z)
>>
>> you are simultaneously estimating a SF production model and a conditional
>> mean model in which
>> the mean of the truncated-normally distributed inefficiency is modeled as
>> a linear function of a specific set of covariates.
>> In this case, the postestimation command
>>
>> predict te, te
>>
>> will automatically compute unit technical efficiencies using the Batese
>> and Coelli (1988) estimator in which the
>> conditional mean model is explicitly taken into account. The same is true
>> in the case of technical inefficiency using
>>
>> predict u, u
>>
>> For more details, take a look at the Stata [R] Base Reference manual,
>> chapter "frontier — Stochastic frontier models",
>> section "Methods and formulas".
>>
>> Best,
>> Federico
>>
>> On Jul 8, 2013, at 8:22 AM, Nabin Kafle wrote:
>>
>> > I want to calculate the technical efficiency from stochastic frontier.
>> > I want to include the exogeneous variables time and price as directly
>> > as a regressor i.e assume the exogenous variables affect the shape of
>> > the production technology. Now after running the frontier command, i
>> > can use "predict ...,te" to calculate the efficiency net of the
>> > exogenous variable. How can I calculate the gross inefficiency?
>> >
>> > Thanks in advance for your kind help
>> > *
>> > *   For searches and help try:
>> > *   http://www.stata.com/help.cgi?search
>> > *   http://www.stata.com/support/faqs/resources/statalist-faq/
>> > *   http://www.ats.ucla.edu/stat/stata/
>>
>> --
>> Federico Belotti, PhD
>> Research Fellow
>> Centre for Economics and International Studies
>> University of Rome Tor Vergata
>> tel/fax: +39 06 7259 5627
>> e-mail: federico.belotti@uniroma2.it
>> web: http://www.econometrics.it
>>
>>
>> *
>> *   For searches and help try:
>> *   http://www.stata.com/help.cgi?search
>> *   http://www.stata.com/support/faqs/resources/statalist-faq/
>> *   http://www.ats.ucla.edu/stat/stata/

*
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