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Re: st: Stochastic frontier models to estimate multiple-output production functions


From   Federico Belotti <f.belotti@gmail.com>
To   "statalist@hsphsun2.harvard.edu" <statalist@hsphsun2.harvard.edu>
Subject   Re: st: Stochastic frontier models to estimate multiple-output production functions
Date   Thu, 17 Oct 2013 21:15:44 +0200

Laura

in the SF framework technical inefficiencies range from 0 to \infty by assumption. Technical efficiency scores are instead bounded in the unit interval. As for DF, they can be estimated using standard software after some data manipulation. See among the others, Kumbhakar and Lovell (2000).

Federico 

> Il giorno 17/ott/2013, alle ore 19:29, Laura Di Giorgio <lauradg@uw.edu> ha scritto:
> 
> Dear Statalist,
> I am interested in applying stochastic frontier models (with xtfrontier /sfpanel, or in the cross sectional setting) to estimate a multi-output multi-inputs distance function for hospitals production. I tried to use the packages mentioned, but when I predict the inefficiencies, I get results that do not make sense (values bigger than 1). 
> I am wondering if the standard packages can be used to estimate distance functions and whether any adjustment is need for distance functions. 
> 
> Thank you very much!
> Laura Di Giorgio  
> 
> 
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