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st: Frontier analysis


From   erik.brouwer@nl.pwc.com
To   statalist@hsphsun2.harvard.edu
Subject   st: Frontier analysis
Date   Thu, 5 Feb 2004 14:59:56 +0100

Dear all,

First of all, thanks for all your advices, they were very useful to me.

After having solved the problems, Stata is now generating results
comparable with those from Limdep (same data, same coefficients, same
standard errors (by approx.). Still a final question lasting, my assumption
is that the inefficiency value is given by 'u' in Stata. The reason for
this is that these values are the same as given by Limdep (via the command
eff, this is E[u/e]). Stata's reference guide gives the following
definition on u:

u gives estimates of minus the natural log of the technical efficiency via
E[u_i|e_i]
te gives estimates of the technical efficiency via E[exp(-su_i)|e_i]

Can you tell me which is the correct variable for the inefficiency
component? u or te?

thanks and regards


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