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  • Two-tiered Stochastic Frontier Analysis

    Hello to everyone,

    I am working on application of the two-tier stochastic frontier (Polachek and Yoon 1987). I was wondering if anyone could give me suggestions on how to perform the analysis with Stata.

    Browsing the internet, looking for information, I came across some papers that make mention of some ado files, but I couldn't find it.

    I hope any of you can help me

    Gaetano

  • #2
    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!

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    • #3
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      https://journals.sagepub.com/doi/pdf/10.1177/1536867X231162033
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