Some Notes about the Using of Software to Estimate the Half-Normal Model
DOI:
https://doi.org/10.46661/revmetodoscuanteconempresa.2091Keywords:
Frontera estocástica, frontera determinista, estimador máximo verosímil, software FRONTIER, stochastic frontier, deterministic frontier, maximum likelihood estimator.Abstract
Using the maximum likelihood method, in order to estimate Half-Normal stochastic frontier production models, entails several practical difficulties that, perhaps, have not been sufficiently emphasised. In employing FRONTIER software, we analyse the case in which the estimation obtained suggests the absence of random factors in the composite error term. We have proved that there are reasons to doubt the validity of the parameter estimates and especially of its standard errors. On the other hand, no estimation is obtained in the previous situation, with LIMDEP software, but an error message.
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