Re: st: Technical Efficiency with Stata sfpanel command

[Nick Cox <njcoxstata@gmail.com>]

-sfpanel- is user-written, as you are asked to explain:

SJ-13-4 st0315  . . . . . . . . . . . Stochastic frontier analysis using Stata
        . . . . . . . . . . . F. Belotti, S. Daidone, G. Ilardi, and V. Atella
        (help sfcross, sfcross_postestimation, sfpanel,
        sfpanel_postestimation if installed)
        Q4/13   SJ 13(4):719--758
        estimates cross-sectional and panel-data stochastic frontier
        models

The authors may (should) have good answers, but otherwise

1. Difficulties fitting a model to your data could just stem from your
data being unsuitable for your model, and without a sight of your data
it's difficult for anyone to comment.

2. People who do this kind of thing (not me) would surely be
interested in whether you have success with fitting this model in
other software, which does not seem to be spelled out here.

3. The usual advice if a model doesn't fit is to retreat to trying a
simpler model, although I have no idea whether that even makes sense
in this case.

4. Regardless of whether  Battese and Coelli (1995)  is utterly
standard in this field, you are asked to avoid minimal name (date)
references on Statalist.
Nick
njcoxstata@gmail.com


On 21 February 2014 14:53, Aristeidis dadoukis <a_dado12@yahoo.co.uk> wrote:
> Dear Statalist members,
>
> I am new to Stata, so far I was using the Frontier 4.1 software.  I am interested in estimating an input oriented distance function using the Battese and Coelli (1995) model specifications, and then deriving scale efficiencies for individual banks.
>
> My model includes 3 inputs (x), 3 outputs(y) and 3 exogenous variables(z).  I have prepared the data for the translog function in the same way as when using the Frontier 4.1 software (ie arithmetically mean adjusting the inputs/outputs and generating the translog terms).  My sample covers  8 years and 15 obs per year.
>
> However, when using the sfpanel command the MLE does not converge.  The command that I used is the following (please note that I also included the translog terms in the command)
>
> sfpanel lnx1 lnx2 lnx3 lny1 lny2 lny3, model(bc95) emean(z1, z2, z3)
>
> I would appreciate any advice on what might be wrong.
>
> Aslo, what are the steps for estimating the scale efficiencies through Stata?
>
> Thanks and regards
> Aristeidis Dadoukis
>
>
> *
> *   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/

*
*   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/