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Output from the program FRONTIER (Version 4.

1c)

instruction file = terminal


data file = apre1.dta

Error Components Frontier (see B&C 1992)


The model is a production function
The dependent variable is logged

the ols estimates are :

coefficient standard-error t-ratio

beta 0 0.25270064E+01 0.55265138E+00 0.45725145E+01


beta 1 -0.13291365E-01 0.13343432E-02 -0.99609793E+01
beta 2 0.24816796E+00 0.10711087E+00 0.23169261E+01
beta 3 0.84511984E-03 0.12432616E-02 0.67976028E+00
beta 4 0.87141840E+00 0.90841849E-01 0.95926978E+01
beta 5 0.93476280E-02 0.17831286E-02 0.52422625E+01
sigma-squared 0.98934042E-01

log likelihood function = -0.22345097E+02

the estimates after the grid search were :

beta 0 0.27697552E+01
beta 1 -0.13291365E-01
beta 2 0.24816796E+00
beta 3 0.84511984E-03
beta 4 0.87141840E+00
beta 5 0.93476280E-02
sigma-squared 0.15174136E+00
gamma 0.61000000E+00
mu is restricted to be zero
eta is restricted to be zero

iteration = 0 func evals = 20 llf = -0.21596226E+02


0.27697552E+01-0.13291365E-01 0.24816796E+00 0.84511984E-03
0.87141840E+00
0.93476280E-02 0.15174136E+00 0.61000000E+00
gradient step
iteration = 5 func evals = 47 llf = -0.21448878E+02
0.27618130E+01-0.12858560E-01 0.27582732E+00 0.74890024E-03
0.86644654E+00
0.96178961E-02 0.14617412E+00 0.61472982E+00
iteration = 10 func evals = 98 llf = -0.21212365E+02
0.25149947E+01-0.12311465E-01 0.27197795E+00 0.96035651E-03
0.90907198E+00
0.10429507E-01 0.16971391E+00 0.71435521E+00
iteration = 13 func evals = 141 llf = -0.21212340E+02
0.25142766E+01-0.12309816E-01 0.27224790E+00 0.95947813E-03
0.90922420E+00
0.10430762E-01 0.16985660E+00 0.71484157E+00

the final mle estimates are :

coefficient standard-error t-ratio

beta 0 0.25142766E+01 0.48462921E+00 0.51880419E+01


beta 1 -0.12309816E-01 0.13860133E-02 -0.88814560E+01
beta 2 0.27224790E+00 0.99118902E-01 0.27466799E+01
beta 3 0.95947813E-03 0.11648453E-02 0.82369575E+00
beta 4 0.90922420E+00 0.79579168E-01 0.11425405E+02
beta 5 0.10430762E-01 0.17642866E-02 0.59121696E+01
sigma-squared 0.16985660E+00 0.48546161E-01 0.34988678E+01
gamma 0.71484157E+00 0.18117395E+00 0.39456091E+01
mu is restricted to be zero
eta is restricted to be zero

log likelihood function = -0.21212340E+02

LR test of the one-sided error = 0.22655149E+01


with number of restrictions = 1
[note that this statistic has a mixed chi-square distribution]

number of iterations = 13

(maximum number of iterations set at : 100)

number of cross-sections = 97

number of time periods = 1

total number of observations = 97

thus there are: 0 obsns not in the panel

covariance matrix :

0.23486547E+00 -0.28636170E-03 0.26262287E-01 -0.18280120E-03 -0.37521334E-


01
-0.63450769E-03 -0.27205111E-02 -0.14103292E-01
-0.28636170E-03 0.19210329E-05 0.22241559E-04 -0.10891609E-06 0.37610975E-
04
0.87721924E-06 0.21826277E-04 0.97594328E-04
0.26262287E-01 0.22241559E-04 0.98245568E-02 -0.24629973E-04 -0.42474985E-
02
-0.58567381E-04 0.76798240E-03 0.34484271E-02
-0.18280120E-03 -0.10891609E-06 -0.24629973E-04 0.13568646E-05 0.25704972E-
04
0.41511945E-06 0.63990194E-05 0.29041484E-04
-0.37521334E-01 0.37610975E-04 -0.42474985E-02 0.25704972E-04 0.63328440E-
02
0.91739289E-04 0.70691067E-03 0.31630887E-02
-0.63450769E-03 0.87721924E-06 -0.58567381E-04 0.41511945E-06 0.91739289E-
04
0.31127072E-05 0.23354273E-04 0.10508231E-03
-0.27205111E-02 0.21826277E-04 0.76798240E-03 0.63990194E-05 0.70691067E-
03
0.23354273E-04 0.23567297E-02 0.75749019E-02
-0.14103292E-01 0.97594328E-04 0.34484271E-02 0.29041484E-04 0.31630887E-
02
0.10508231E-03 0.75749019E-02 0.32823999E-01

technical efficiency estimates :

firm eff.-est.

1 0.73395737E+00
2 0.66018788E+00
3 0.88367708E+00
4 0.80151916E+00
5 0.66018788E+00
6 0.80359795E+00
7 0.83475218E+00
8 0.76485977E+00
9 0.71951909E+00
10 0.60364012E+00
11 0.66587755E+00
12 0.72488022E+00
13 0.81575521E+00
14 0.88315492E+00
15 0.76410368E+00
16 0.80151916E+00
17 0.67781627E+00
18 0.47566854E+00
19 0.84883651E+00
20 0.61648582E+00
21 0.64816805E+00
22 0.70468163E+00
23 0.74410664E+00
24 0.68844139E+00
25 0.70023111E+00
26 0.75608275E+00
27 0.86799929E+00
28 0.85061760E+00
29 0.83523908E+00
30 0.85386855E+00
31 0.81166736E+00
32 0.90765088E+00
33 0.88664578E+00
34 0.83083455E+00
35 0.89463427E+00
36 0.84227887E+00
37 0.92413804E+00
38 0.83917486E+00
39 0.90514280E+00
40 0.87113755E+00
41 0.78343384E+00
42 0.83708704E+00
43 0.86036769E+00
44 0.88832511E+00
45 0.83620314E+00
46 0.57080819E+00
47 0.85821352E+00
48 0.87606355E+00
49 0.88937673E+00
50 0.80105925E+00
51 0.73250416E+00
52 0.93700362E+00
53 0.86943513E+00
54 0.87112863E+00
55 0.77198040E+00
56 0.82134255E+00
57 0.86943513E+00
58 0.77908897E+00
59 0.77198040E+00
60 0.82216037E+00
61 0.78911706E+00
62 0.87823313E+00
63 0.88546472E+00
64 0.84537669E+00
65 0.68802136E+00
66 0.78911706E+00
67 0.61739080E+00
68 0.81369429E+00
69 0.74518605E+00
70 0.82134255E+00
71 0.85279635E+00
72 0.75306670E+00
73 0.79388161E+00
74 0.74203666E+00
75 0.82134255E+00
76 0.72243732E+00
77 0.81474588E+00
78 0.34072359E+00
79 0.71471610E+00
80 0.65077091E+00
81 0.75846492E+00
82 0.76410368E+00
83 0.79420338E+00
84 0.78992818E+00
85 0.83620314E+00
86 0.87845130E+00
87 0.64816805E+00
88 0.67491868E+00
89 0.56566369E+00
90 0.58884193E+00
91 0.77908897E+00
92 0.76410368E+00
93 0.68750130E+00
94 0.80239370E+00
95 0.82496697E+00
96 0.62983411E+00
97 0.74967811E+00

mean efficiency = 0.77490423E+00

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