Hi All,
I have been running stochastic frontier model for the estimation of cost functon using sfpanel command.My motivation is to calculate the cost elasticity of output (∂lnTCit)/(∂lnQit)and the the conditional mean estimator of uit from estimating the following model.I am facing the following issue
1.How can I estimte the cost elasticity of output for each i and t and also conditional mean estimation of uit for i and t.Can anyone help me with code I can use for those variable estimation ?
2.After running the model ,there is no value for sigmau and sigamv (results are attached below)
Unfortunately ,after running the model I was getting no value in the place of uit and Can anyone help me in this regard.
I am attaching both results and data sample
Sample of data
[CODE]
* Example generated by -dataex-. To install: ssc install dataex
clear
input long banks int Year float(lnTC lnQ w1 w2 w3 lne)
Could any please guide me how can I solve this issues.Any help is highly appreciated
I have been running stochastic frontier model for the estimation of cost functon using sfpanel command.My motivation is to calculate the cost elasticity of output (∂lnTCit)/(∂lnQit)and the the conditional mean estimator of uit from estimating the following model.I am facing the following issue
1.How can I estimte the cost elasticity of output for each i and t and also conditional mean estimation of uit for i and t.Can anyone help me with code I can use for those variable estimation ?
2.After running the model ,there is no value for sigmau and sigamv (results are attached below)
Unfortunately ,after running the model I was getting no value in the place of uit and Can anyone help me in this regard.
I am attaching both results and data sample
Code:
sfpanel lnTC lnQ lW1 lW2 lW3 lne Year,cost initial: Log likelihood = -3174.5302 Iteration 0: Log likelihood = -3174.5302 (not concave) Iteration 1: Log likelihood = -1074.9929 (not concave) Iteration 2: Log likelihood = -902.00697 (not concave) Iteration 3: Log likelihood = -829.88396 (not concave) Iteration 4: Log likelihood = -816.61709 (not concave) Iteration 5: Log likelihood = -814.00632 (not concave) Iteration 6: Log likelihood = -811.92452 (not concave) Iteration 7: Log likelihood = -811.71687 (not concave) Iteration 8: Log likelihood = -811.63383 (not concave) Iteration 9: Log likelihood = -811.60062 (not concave) Iteration 10: Log likelihood = -811.59398 (not concave) Iteration 11: Log likelihood = -811.59265 (not concave) Iteration 12: Log likelihood = -811.59212 (not concave) Iteration 13: Log likelihood = -811.59206 (not concave) Iteration 14: Log likelihood = -811.59206 (not concave) Iteration 15: Log likelihood = -811.59205 (not concave) Iteration 16: Log likelihood = -811.59205 (not concave) Iteration 17: Log likelihood = -811.59205 (not concave) Iteration 18: Log likelihood = -811.59205 (not concave) Iteration 19: Log likelihood = -811.59205 (not concave) Iteration 20: Log likelihood = -811.59205 (not concave) Iteration 21: Log likelihood = -811.59205 (not concave) Iteration 22: Log likelihood = -811.59205 (not concave) Iteration 23: Log likelihood = -811.59205 (not concave) Iteration 24: Log likelihood = -811.59205 (not concave) Iteration 25: Log likelihood = -811.59205 (not concave) Iteration 26: Log likelihood = -811.59205 (not concave) Iteration 27: Log likelihood = -811.59205 (not concave) Iteration 28: Log likelihood = -811.59205 (not concave) Iteration 29: Log likelihood = -811.59205 (not concave) Iteration 30: Log likelihood = -811.59205 (not concave) Iteration 31: Log likelihood = -811.59205 (not concave) Iteration 32: Log likelihood = -811.59205 (not concave) Iteration 33: Log likelihood = -811.59205 (not concave) Iteration 34: Log likelihood = -811.59205 (not concave) Iteration 35: Log likelihood = -811.59205 (not concave) Iteration 36: Log likelihood = -811.59205 (not concave) Iteration 37: Log likelihood = -811.59205 (not concave) Iteration 38: Log likelihood = -811.59205 (not concave) Iteration 39: Log likelihood = -811.59205 (not concave) Iteration 40: Log likelihood = -811.59205 (not concave) Iteration 41: Log likelihood = -811.59205 (not concave) Iteration 42: Log likelihood = -811.59205 (not concave) Iteration 43: Log likelihood = -811.59205 (not concave) Iteration 44: Log likelihood = -811.59205 (not concave) Iteration 45: Log likelihood = -811.59205 (not concave) Iteration 46: Log likelihood = -811.59205 (not concave) Iteration 47: Log likelihood = -811.59205 (not concave) Iteration 48: Log likelihood = -811.59205 (not concave) Iteration 49: Log likelihood = -811.59205 (not concave) Iteration 50: Log likelihood = -811.59205 (not concave) Iteration 51: Log likelihood = -811.59205 (not concave) Iteration 52: Log likelihood = -811.59205 (not concave) Iteration 53: Log likelihood = -811.59205 (not concave) Iteration 54: Log likelihood = -811.59205 (not concave) Iteration 55: Log likelihood = -811.59205 (not concave) Iteration 56: Log likelihood = -811.59205 (not concave) Iteration 57: Log likelihood = -811.59205 (not concave) Iteration 58: Log likelihood = -811.59205 (not concave) Iteration 59: Log likelihood = -811.59205 (not concave) Iteration 60: Log likelihood = -811.59205 (not concave) Iteration 61: Log likelihood = -811.59205 (not concave) Iteration 62: Log likelihood = -811.59205 (not concave) Iteration 63: Log likelihood = -811.59205 (not concave) Iteration 64: Log likelihood = -811.59205 (not concave) Iteration 65: Log likelihood = -811.59205 (not concave) Iteration 66: Log likelihood = -811.59205 (not concave) Iteration 67: Log likelihood = -811.59205 (not concave) Iteration 68: Log likelihood = -811.59205 (not concave) Iteration 69: Log likelihood = -811.59205 (not concave) Iteration 70: Log likelihood = -811.59205 (not concave) Iteration 71: Log likelihood = -811.59205 (not concave) Iteration 72: Log likelihood = -811.59205 (not concave) Iteration 73: Log likelihood = -811.59205 (not concave) Iteration 74: Log likelihood = -811.59205 (not concave) Iteration 75: Log likelihood = -811.59205 (not concave) Iteration 76: Log likelihood = -811.59205 (not concave) Iteration 77: Log likelihood = -811.59205 (not concave) Iteration 78: Log likelihood = -811.59205 (not concave) Iteration 79: Log likelihood = -811.59205 (not concave) Iteration 80: Log likelihood = -811.59205 (not concave) Iteration 81: Log likelihood = -811.59205 (not concave) Iteration 82: Log likelihood = -811.59205 (not concave) Iteration 83: Log likelihood = -811.59205 (not concave) Iteration 84: Log likelihood = -811.59205 (not concave) Iteration 85: Log likelihood = -811.59205 (not concave) Iteration 86: Log likelihood = -811.59205 (not concave) Iteration 87: Log likelihood = -811.59205 (not concave) Iteration 88: Log likelihood = -811.59205 (not concave) Iteration 89: Log likelihood = -811.59205 (not concave) Iteration 90: Log likelihood = -811.59205 (not concave) Iteration 91: Log likelihood = -811.59205 (not concave) Iteration 92: Log likelihood = -811.59205 (not concave) Iteration 93: Log likelihood = -811.59205 (not concave) Iteration 94: Log likelihood = -811.59205 (not concave) Iteration 95: Log likelihood = -811.59205 (not concave) Iteration 96: Log likelihood = -811.59205 (not concave) Iteration 97: Log likelihood = -811.59205 (not concave) Iteration 98: Log likelihood = -811.59205 (not concave) Iteration 99: Log likelihood = -811.59205 (not concave) Iteration 100: Log likelihood = -811.59205 (not concave) Time-varying decay model (truncated-normal) Number of obs = 1170 Group variable: banks Number of groups = 108 Time variable: Year Obs per group: min = 4 avg = 10.8 max = 15 Prob > chi2 = 0.0000 Log likelihood = -811.5921 Wald chi2(6) = 12158.00 ------------------------------------------------------------------------------ lnTC | Coef. Std. Err. z P>|z| [95% Conf. Interval] -------------+---------------------------------------------------------------- Frontier | lnQ | .9421145 .014996 62.82 0.000 .9127228 .9715062 lW1 | .1471734 .0334736 4.40 0.000 .0815663 .2127805 lW2 | .3634593 .0419621 8.66 0.000 .2812151 .4457035 lW3 | -.0532101 .0243248 -2.19 0.029 -.1008859 -.0055343 lne | .0290785 .0460248 0.63 0.528 -.0611286 .1192855 Year | .0138036 .0061371 2.25 0.024 .0017752 .0258321 _cons | -28.33852 12.316 -2.30 0.021 -52.47743 -4.199609 -------------+---------------------------------------------------------------- /lnsigma2 | -.6937709 .2604786 -2.66 0.008 -1.2043 -.1832423 /ilgtgamma | -6.498446 . . . . . /mu | -1.028373 .270522 -3.80 0.000 -1.558586 -.4981594 /eta | .4919009 .0271935 18.09 0.000 .4386027 .5451992 -------------+---------------------------------------------------------------- sigma2 | .4996882 .1301581 .299902 .8325664 gamma | .0015035 . . . sigma_u2 | .0007513 . . . sigma_v2 | .498937 . . . ------------------------------------------------------------------------------
[CODE]
* Example generated by -dataex-. To install: ssc install dataex
clear
input long banks int Year float(lnTC lnQ w1 w2 w3 lne)
Code:
2 2005 .8799171 3.979031 .014761693 .008797058 5.757736 -.4245088 2 2006 .9806542 4.149746 .01786599 .009476278 10.502755 -.38704115 2 2007 1.5470518 4.206071 .021492336 .011139514 26.31124 -.4373363 2 2008 1.2311307 4.2211227 .01402339 .009199563 8.548129 -.51548547 2 2009 1.5821284 4.256523 .02316161 .012156772 6.488263 -.5057602 2 2010 1.9651524 4.2021313 .012839814 .011781475 2.3706899 -.4954846 2 2011 2.1695108 4.949145 .004894645 .0088237375 4.1498384 -.688329 2 2012 2.2975523 4.851576 .01233861 .010805344 5.249218 -.5347911 2 2013 2.441216 5.342364 .011040826 .006396872 9.942871 -.9713093 2 2014 2.907158 5.353617 .013454747 .006281531 22.652565 -.924746 2 2015 2.682288 5.433244 .012420725 .005577133 6.476387 -.88614 3 2005 5.221761 8.009612 .082947 .004238982 6.235589 -3.310225 3 2006 4.745547 6.578355 .22036354 .004700458 1.978753 -2.2075565 3 2007 3.935075 6.71028 .068113595 .006666761 2.813509 -2.3228178 3 2008 3.976958 6.603424 .06443856 .010083202 4.0313163 -1.6851938 3 2009 3.5016036 6.734154 .0393619 .008248983 2.019925 -1.6707683 3 2010 3.5011904 6.825503 .03840889 .010253849 2.0973349 -1.6408447 3 2011 3.662497 6.872595 .04315811 .00881281 2.075602 -1.9201342 3 2012 4.0577774 7.037947 .06460982 .007888065 1.9066423 -1.3721367 3 2013 4.5423017 7.283989 .09854412 .0084823435 3.533019 -1.609886 3 2014 4.843033 8.022623 .06214907 .005258583 3.904661 -1.9178758 3 2015 5.089585 8.307534 .06644992 .00715505 3.9000454 -2.0226731 3 2016 5.17642 8.386787 .066513106 .007964911 4.277571 -1.9885027 3 2017 5.266014 8.671316 .05405581 .006516449 4.3000126 -2.20137 3 2018 5.132167 8.58504 .05410484 .007018617 4.273615 -2.1429875 3 2019 5.268837 8.396245 .06914737 .010424374 5.901501 -1.9622693 4 2016 9.720836 12.92433 .06472372 .008885134 1.1286563 -2.83629 4 2017 9.707348 12.91843 .06129366 .009643763 1.2734282 -2.808212 4 2018 9.655842 12.979367 .05442834 .008539699 1.272834 -3.203189 4 2019 9.667606 12.985637 .05297097 .01017746 1.2559856 -3.304147 5 2005 7.969597 11.300983 .04468762 .01507448 1.4619298 -2.9650185 5 2006 8.078858 11.468264 .04515073 .01231821 1.3945487 -2.721048 5 2007 8.333355 11.69174 .05261883 .009173552 .9724557 -2.7156355 5 2008 8.640554 11.882674 .06281914 .008317895 1.0803719 -2.765411 5 2009 8.795658 12.063498 .06126811 .008949884 1.2610372 -2.8145945 5 2010 8.900624 12.283447 .05392183 .008310483 1.4467212 -2.891573 5 2011 9.141047 12.50157 .05301671 .010295865 2.0364432 -2.8782396 5 2012 9.476698 12.691647 .06491904 .010028098 2.2470727 -2.8571236 5 2013 9.65036 12.811855 .07032096 .00971721 2.3636065 -2.890508 5 2014 9.734595 12.88108 .07040014 .010184621 2.639274 -2.927438 5 2015 9.755708 12.894925 .06999255 .01015957 2.642773 -2.888289 6 2005 6.093871 8.47327 .06676163 .03543046 4.23156 -2.3055892 6 2006 6.121363 8.569324 .06834578 .032514125 4.3679714 -2.2155104 6 2007 6.226747 8.734922 .062571764 .033836726 6.008393 -2.2111201 6 2009 6.121963 7.121478 .24609217 .08382229 4.023909 -.9280076 6 2010 5.868061 7.417564 .05649794 .05885047 4.7353344 -1.1141788 6 2011 6.118839 7.515621 .07339491 .0586453 9.132326 -1.0242906 6 2012 6.333581 7.747884 .16090965 .05039702 12.6364 -1.2272077 6 2013 6.532751 7.92873 .17390823 .04257334 13.195005 -1.206111 6 2014 6.639848 8.115021 .1832227 .03781401 14.068992 -1.4605165 6 2015 6.793583 8.287936 .12991251 .03351944 20.727097 -1.3348184 6 2016 6.88379 8.5070095 .13702862 .026807984 28.095703 -1.5261662 6 2017 7.063436 8.797992 .0769965 .01978502 32.73974 -1.6577874 6 2018 7.208963 9.056313 .078116 .017209167 43.75833 -1.663232 6 2019 7.413788 9.191818 .06841774 .01860899 47.79899 -1.553868 7 2016 9.631623 12.79095 .070645675 .008675264 2.1377819 -2.900741 7 2017 9.677074 12.87898 .06393622 .009398394 2.2551675 -2.976933 7 2018 9.614842 12.952536 .05594152 .007671399 2.270955 -3.108408 7 2019 9.677474 12.998153 .05560884 .008990746 2.3940604 -2.9411316 8 2005 7.621871 10.927984 .04402493 .01648483 4.428826 -2.8801174 8 2006 7.768147 11.119393 .04439987 .012119408 4.4510283 -2.642855 8 2007 7.948376 11.334323 .04578051 .011543773 4.851605 -2.712198 8 2008 8.237237 11.498554 .05805413 .00900103 4.142326 -2.857438 8 2009 8.48714 11.69891 .0631034 .009114472 3.293391 -2.932481 8 2010 8.61752 11.94913 .05378073 .009121764 3.794488 -3.0197225 8 2011 8.82102 12.14311 .05501858 .010139685 5.369647 -2.819802 8 2012 9.146725 12.29547 .07160434 .00923304 5.963413 -2.812519 8 2013 9.322765 12.467672 .07393377 .008796936 6.712796 -2.8525295 8 2014 9.462647 12.59421 .07444726 .008263692 5.323346 -2.952415 8 2015 9.58672 12.697028 .07632024 .0091697 2.1680138 -2.912303 9 2012 5.018106 8.162133 .02336386 .016193483 2.769131 -1.674976 9 2013 5.656479 8.679472 .064830005 .01297787 2.6741216 -1.4666092 9 2014 5.603228 8.660218 .06378886 .012500245 3.836367 -1.5762324 9 2015 5.735234 8.758955 .07692653 .012568546 5.441102 -1.560348 9 2016 5.850904 8.78004 .08608764 .013827927 1.953638 -1.4963902 9 2017 5.74869 8.760537 .05797212 .012172978 2.014933 -1.5790217 9 2018 5.70592 8.738535 .05780155 .013723835 2.2929409 -1.3602573 9 2019 5.806941 9.174879 .04858696 .009534065 2.558597 -1.715479 10 2005 7.481195 11.040727 .03761922 .004685679 1.1214097 -2.746389 10 2006 7.872686 11.338037 .04513579 .00483001 1.433912 -2.846889 10 2007 8.344723 11.71635 .05091922 .005205577 1.804232 -3.0695524 10 2008 8.791013 12.10621 .05044109 .006116648 2.335078 -2.52522 10 2009 9.211089 12.41008 .06091015 .006753646 2.664038 -2.671495 10 2010 9.244089 12.61691 .04694632 .006951767 3.0347364 -2.421176 10 2011 9.500862 12.908272 .04540225 .006649408 2.1025615 -2.547504 10 2012 9.902687 13.087888 .06350127 .007282792 2.658803 -2.5275545 10 2013 10.10359 13.241598 .06934033 .006979615 2.935182 -2.3308225 10 2014 10.188302 13.344802 .06652388 .006787695 3.278043 -2.3053024 10 2015 10.32411 13.4885 .06591717 .006743345 3.6605446 -2.3359706 10 2016 10.441614 13.627089 .06747837 .006253936 2.866967 -2.3178391 10 2017 10.562275 13.728035 .06382818 .006470612 3.256006 -2.3782704 10 2018 10.62505 13.861582 .05987924 .006238639 3.522525 -2.388439 10 2019 10.80184 14.012917 .06067336 .00592677 3.922427 -2.486007 11 2005 5.38701 8.8262825 .06402343 .007897282 3.9624274 -1.3405435 11 2006 5.559452 8.873333 .06979999 .009277774 6.818845 -1.3272774 11 2007 5.73283 8.925368 .06220008 .012318526 7.359299 -1.26806
