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Re: st: Decompose the technical efficiency


From   Song Nhac <[email protected]>
To   [email protected]
Subject   Re: st: Decompose the technical efficiency
Date   Sun, 12 Jun 2011 08:28:02 +0200

Many thank Scott,

It works.

Have a nice day.
SongNhac

On Sun, Jun 12, 2011 at 4:14 AM, Scott Merryman
<[email protected]> wrote:
> Isn't necessary to calculate the relative inefficiency (r(max) - u) first?
>
> For example:
>
> webuse xtfrontier1, clear
> xtreg lnwid lnwo lnmac,re
> predict u,u
> sum u
> gen te_re = exp(-(r(max) - u))
> sum te
>
> Scott
>
>
> On Sat, Jun 11, 2011 at 6:03 AM, Song Nhac <[email protected]> wrote:
>> Dear All,
>>
>> I employ the command as:
>>
>> xtreg profit loan earningasset priceoflabor priceoffund equity totalasset, re
>>
>> to find the technical efficiency of banks. And decompose the effect
>> u_i as the inefficiency and TE=exp(-u_i) ,
>> I know that in this command, we assume that ui~Gaussian. But I found
>> that the TE is greater than 1. Anyone know how I put more assumption
>> to u_i? Since I run xtfrontier...., ti- it gave me a quite different
>> TE.
>>
>> My purpose is to compare the unobservable part with the TE, so that
>> why I intend to employ xtreg since from xtfrontier- I cannot decompose
>> the error term or get the value of v_it.
>>
>> Thank for your kindly attention and support.
>>
>> Great weekend.
>> Song Nhac
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