Two-tiered Stochastic Frontier Analysis with Stata

[Aurora Iannello]

Good morning everyone,

I wondered if someone could tell me anything about how to perform a 2-tiered stochastic frontier analysis (main reference: Polachek and Yoon 1987) with Stata.

I know that some Stata packages exist to perform the single-tiered SF analysis, but I haven't found anything yet about the 2-tiered. Do you happen to know some?

In case no specific packages existed, do you have any suggestion on how to proceed if I wanted to perform the analysis the same? I'm far from being an expert in econometrics and in the use of Stata, so any help would really be appreciated.

I don't want to give useless information about my data, so I'll just say that the analysis is a cross-sectional one. Please ask if you need any other information.

Thanks,
Aurora

[Carlo Lazzaro]

Aurora:
welcome to this forum.
The https://www.stata.com/bookstore/prac...tier-analysis/ textbook touches on what you'rer interesting in (page 314), but does not provide any Stata code.
As an aside, although being highly symphatetic with your purposes of being efficient in posting, it's up to the original poster to share all the details that she/he deems relevant to help interested listers to help her/him out in turn (not the other way round).

[Aurora Iannello]

Thanks a lot for the suggestions Carlo. I know the textbook in the link but as you say, although really useful in SFA, it's not really specific on 2-tier Sfa.

[Carlo Lazzaro]

Aurora:
sadly true!
Hopefully the quoted reference can give you some more (and helpful) clue.

[Meera Ancy Vincent]

Hi,

I am currently working with the two-tier stochastic frontier model. I am aware of the sftt command for cross-sectional data (Lian, Y., Liu, C., & Parmeter, C. F. (2023). Two-tier stochastic frontier analysis using Stata. The Stata Journal, 23(1), 197-229). However, I am unsure how to apply this framework to panel data.

I would greatly appreciate any assistance you can provide.

Thank you!