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st: RE: Frontier code- r(1400) error
From
Gordon Hughes <[email protected]>
To
[email protected]
Subject
st: RE: Frontier code- r(1400) error
Date
Tue, 29 Mar 2011 10:39:39 +0100
Nick's answer is correct. You have 27 parameters plus the additional
parameters for the efficiency error distribution and only 29
observations. This will never produce a satisfactory result.
Translog frontier models can be difficult to estimate under the best
of circumstances without trying to over-determine the frontier. You
should start by estimating the basic log-linear Cobb-Douglas form
(dropping all of the interaction terms) and then introduce
interactions individually and very carefully. Even then it is
unlikely that you will get any convincing results with such a small sample.
Gordon Hughes
[email protected]
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