Stochastic Frontier Analysis Using Stata

48 Pages Posted: 13 Sep 2012 Last revised: 3 Mar 2014

See all articles by Federico Belotti

Federico Belotti

University of Rome Tor Vergata - Department of Economics and Finance; University of Rome, Tor Vergata - Centre for Economics and International Studies (CEIS)

Silvio Daidone

Food and Agriculture Organization of the United Nations

Giuseppe Ilardi

Bank of Italy

Vincenzo Atella

University of Rome Tor Vergata - Centre for International Studies on Economic Growth (CEIS); Department of Economics and Finance; University of Rome Tor Vergata - Faculty of Economics

Date Written: September 13, 2012

Abstract

This paper describes sfcross and sfpanel, two new Stata commands for the estimation of cross-sectional and panel data stochastic frontier models. sfcross extends the official frontier capabilities by including additional models (Greene 2003; Wang 2002) and command functionality, such as the possibility to manage complex survey data characteristics. Similarly, sfpanel allows to estimate a much wider range of time-varying inefficiency models compared to the official xtfrontier command including, among the others, the Cornwell et al. (1990) and Lee and Schmidt (1993) models, the flexible model of Kumbhakar (1990), the inefficiency effects model of Battese and Coelli (1995) and the 'true' fixed and random-effects models developed by Greene (2005a). A brief overview of the stochastic frontier literature and a description of the two commands and their options are given, and illustrations using simulated and real data are provided.

Keywords: stochastic frontier analysis, cross-sectional, panel data

JEL Classification: C87

Suggested Citation

Belotti, Federico and Daidone, Silvio and Ilardi, Giuseppe and Atella, Vincenzo, Stochastic Frontier Analysis Using Stata (September 13, 2012). CEIS Working Paper No. 251. Available at SSRN: https://ssrn.com/abstract=2145803 or http://dx.doi.org/10.2139/ssrn.2145803

Federico Belotti (Contact Author)

University of Rome Tor Vergata - Department of Economics and Finance

Via Columbia 2
Rome, RM 00133
Italy

University of Rome, Tor Vergata - Centre for Economics and International Studies (CEIS) ( email )

Via Columbia, 2
Rome, RM 00133
Italy

Silvio Daidone

Food and Agriculture Organization of the United Nations ( email )

Viale delle Terme di Caracalla
Rome, 00153
Italy

Giuseppe Ilardi

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Vincenzo Atella

University of Rome Tor Vergata - Centre for International Studies on Economic Growth (CEIS) ( email )

Via Columbia, 2
Rome, I-00133
Italy
+39 06 72595648 (Phone)

Department of Economics and Finance ( email )

Via Columbia 2
Roma, 00133
Italy

University of Rome Tor Vergata - Faculty of Economics ( email )

Via Columbia n.2
I-00133 Rome, 00133
Italy
+39 06 72595635 (Phone)
+30 06 2020 500 (Fax)

HOME PAGE: http://www.economia.uniroma2.it/sefemeq/professori/atella/

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