SFM.generate: Data Generation for Stochastic Frontier Models

In clemenshaerder/fepsfrontieR: Estimation of fixed-effect panel stochastic frontier models by MLE

Description

Creates a fixed-effects panel stochastic frontier model. Data sets created by this function can be applied for sfmfep( ) of this package fepsfrontieR. The model specificiation are: alpha_i are fixed-effect parameters drawn from a uniform distribution in [0, 1]. x_it is drawn from a normal distribution N(alpha_i, 1). z_it is drawn from a standard normal distribution. u_i (inefficency) is drawn from a truncated normal distribution with N(mu, sigma_u).

Usage

SFM.generate(N, Time, beta, delta, sigma_u, sigma_v, mu = 0)

Arguments

N	is an integer and specifies the amount of panels
Time	is an integer and specifies the amount of observations per panel
beta	is a vector of k estimates. K explenatory varibles will be gerenated.
delta	is a vector of r estimates. R inefficency determinats will be gerenated.
sigma_u	is postivie numeric and is the variation of the stochastic inefficency
sigma_v	is postivie numeric and is the variation of the zero-mean random error.
mu	is numeric and is the mean of the truncated normal distribution of the stochastic inefficency.

Value

A data.frame( ) including x, y, z & alpha variables

Examples

exampleSFM <- SFM.generate (N = 20, Time = 5, beta = c(0.5, 0.2, 9, 3),
        delta = c(0.5, 0.1, 2), sigma_u = 0.2, sigma_v = 0.1)

exampleSFM

clemenshaerder/fepsfrontieR documentation built on May 22, 2019, 3:43 p.m.