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Since the \eta parameter is positive and statistically significant (even if very small) in both models, there is evidence of increasing efficiency over time in your data.
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That is, the (in)efficiency will increase or decrease according to the sign of the \eta parameter. The BC92 model assumes that inefficiency evolves over time following > assumptions in calculating them using statistical software. > because they really increase their efficiency or is it because of some Efficiency always increased in my dataset. > One more observation is regarding the increasing efficiency over the Sfpanel y k l, model(bc92) dist(tnormal) constr(1) tech(dfp) iter(100) The same is true in the case of the BC92 normal-half normal model (i.e. Svfront(b0) sve(mu) svsigma(sigma) svgamma(gamma) sveta(eta) Sfpanel y k l, model(bc92) dist(tnormal) tech(dfp) iter(10) /// You can get very similar results in the BC92 normal-truncated normal model using The differences you are observing are due to differences in the optimization engine of the two softwares. > had executed the instructions on the terminal so there might be some > outputs attached one with mu (outmu) and other without mu (nomu). > I suspect it because of use of unbalanced panel data. > many missing values in the predicted scores which is not the case with > similarity in the efficiency scores between the one obtained by > industry (56 firms, 18 years, total 704 obs). I am linking few of my comparison from my empirical data for one > deleting some of the observations) there were missing values in When i 'made' the data supplied by you to be unbalanced (by Sfpanel y x1 x2, m(bc92) iter(200) tech(dfp) difficult nrtol(1e-07) The difference you observed is just a matter of differences in default optimization algorithm and convergence criteria between the two commands. > sfpanel is preferable since its more general. > xtfrontier, i got somewhat different result. When i used the same data (as attached by you) for sfpanel and > given by you and also about my experience with sfpanel in last two > I would like to make the following observations with the comments > Earlier, i had used xtfrontier command (sfpanel is not supported by stata 11.1) > Thanks for the reply and writing the sfpanel command. On Oct 4, 2013, at 9:19 AM, Vikash Vaibhav wrote: Re: st: Different result of Technical Efficiency with Frontier 4.1 and Stataįederico Belotti st: Different result of Technical Efficiency with Frontier 4.1 and Stata
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