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# Re: st: frontier

 From Nick Cox To statalist@hsphsun2.harvard.edu Subject Re: st: frontier Date Mon, 17 Dec 2012 16:35:59 +0000

```In this case, "inefficiency" is defined by the context of the
-frontier- command mentioned.

My advice is to read the help file first and then the manual entry.

Being a new user does not oblige anyone to fill in for those basics.

Nick

On Mon, Dec 17, 2012 at 4:25 PM, Yuval Arbel <yuval.arbel@gmail.com> wrote:

> Unfortunately, your question is not very well defined. The term
> "Inefficiency" in Economics have many interpretations. It could be
> inefficiency to society, in which case Banks are highly inefficient,
> because they are discriminating Monopolies, it could be inefficiency
> of the Bank, namely the Bank does not maximizes profit, and it could
> be inefficiency in terms of rational expectation theory, namely price
> movements in the market are not random.
>
> Before you go on, my suggestion to you is to make some search of the
> academic literature either in google scholar or econlit.
>
> On Mon, Dec 17, 2012 at 4:52 PM, Khurshid Djalilov
> <kdjalilov@bournemouth.ac.uk> wrote:

>> I am trying to investigate Cost (Profit) inefficiencies for 86 banks representing two different regions (panel data).
>> In addition to input-output variables I have dummy as well as economic development variables. I was wondering how I can generate cost and profit efficiencies as I am a new user and am having problems with this.
>>
>> The variable I have as following:
>>
>> TC - dependent variable, PBF - (input, independent variable), OV - (input, independent variable), TL - (output, independent variable), OEA - (output, independent variable), NFC - (output, independent variable), N1 - (netput, independent variable), N2 - (netput, independent variable),
>> Y - (time, independent), r - regional dummy (independent), g - growth (independent), inf - inflation (independent).
>>
>> I would appreciate if anyone could write commands using these variables, please.

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