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| From | Song Nhac <songnhac@gmail.com> |
| To | statalist@hsphsun2.harvard.edu |
| Subject | st: Decompose the technical efficiency |
| Date | Sat, 11 Jun 2011 13:03:34 +0200 |
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 * * For searches and help try: * http://www.stata.com/help.cgi?search * http://www.stata.com/support/statalist/faq * http://www.ats.ucla.edu/stat/stata/