[Limdep Nlogit List] SFA

U-Din, Salah S.U-Din at massey.ac.nz
Fri Sep 15 12:25:56 AEST 2017

Hi William
I am looking for one-stage time varying SFA. First I tried BC92 (E64.6) with following codes:
Tc(Total Cost) is dependent variable, w1,w2 are inputs, y1,y2,y3 are outputs of bank.
These codes give me time varying cost efficiency but without any influence of z variable in hfu. Also didn't give relationship of z variables with inefficiency.

Then I tried as per your recommendation the BC95 (E63.3.2 & E63.3.4) codes as:
Frontier;Lhs=tc;Cost;Rhs=one,w1,w2,w11,w12,w22,y1,y2,y3,y11,y22,y33,y12,y13,y23,w1y1,w1y2,w1y3,w2y1,w2y2,w2y3,tr,tsq;model=bc95;costeff=ce;Rh2=one,z1,z2,z3,z4,z5,z6,z7,z8,z9 ;panel$

It gives me following error:
Iterative procedure has converged
Normal exit:  31 iterations. Status=0, F=   -.1569414D+03
Error    143: Models - estimated variance matrix of estimates is singular

Same error does came after the running the BC92 codes mentioned above but it produced results but BC95 codes didn't produced any results.
Please can you advice what is wrong with my codes? I want time varying cost efficiency under influence of z(exogenous) variables and their relationship with inefficiency or efficiency.
Anyone can advise please if know any possible solution.


-----Original Message-----
From: Limdep [mailto:limdep-bounces at mailman.sydney.edu.au] On Behalf Of William Greene
Sent: Tuesday, September 12, 2017 10:49 PM
To: Limdep and Nlogit Mailing List <limdep at mailman.sydney.edu.au>
Subject: Re: [Limdep Nlogit List] SFA

Salah.  It is in section
E63.3.2 Battese and Coelli (1995) Formulation in the manual, with an example.  Please refer to the original article for descriptive material.
/B. Greene

On Mon, Sep 11, 2017 at 8:18 PM, U-Din, Salah via Limdep < limdep at mailman.sydney.edu.au> wrote:

> Hi
> I am working on Stochastic Frontier Analysis under Battese and Coelli
> (1995) model for panel data. I didn't find the commands for BC95 in 
> panel data. Given manual has only for BC92 in panel data and BC95 for 
> time series only. Please can you send me some material which has 
> discussed commands for
> BC95 for panel data.
> Thanks
> Salah
> 0902-AU-NS-01373
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William Greene
Department of Economics
Stern School of Business, New York University
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Email: wgreene at stern.nyu.edu
Ph. +1.212.998.0876
Editor in Chief: Journal of Productivity Analysis Editor in Chief: Foundations and Trends in Econometrics Associate Editor: Economics Letters Associate Editor: Journal of Business and Economic Statistics Associate Editor: Journal of Choice Modeling _______________________________________________
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