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st: SFA analysis

From   Georgeta Vidican <gvidican@MIT.EDU>
Subject   st: SFA analysis
Date   Sat, 14 Oct 2006 15:35:58 -0400

Hi there,

I have a fairly basic question as I am learning Stata and the SFA method.
I want to use a Cobb-Douglas specification model to estimate the production frontier for household farms. I am interested in modeling inefficiency as a function of also other covariates besides the conventional production factors (land, labor, capital).

However, I am not sure I am following the steps correctly. First I estimated a half-normal frontier function (y function of land, labor, capital). However, do I have use a truncated normal distribution if I want to include other covariates (i.e. age, education) (i.e. frontier ln_land ln_labor ln_capital, dist(normal) cm(list_of_covariates))?

Also, is it normal for the results of rubust regression to be very different from this last run?

Many thanks.

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