SFM.inindex: Inefficiency Index of the Stochastic Frontier Model

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

Description

Estimation of the inefficiency based on the conditional expectation of "u" on "epsilon". The estimator does not require alpha and thus not suffer from the approximation problem.

Usage

SFM.inindex(h, sigma2star, mu2star, N, cumTime)

Arguments

h	are the values of the positive non-stochastic inefficency determinants.
sigma2star	is a vector of variance estimations based on a chosen transformation.
mu2star	is a vector of mean estimations based on a chosen transformation.
N	an optional integer specifying the total amount of panels in the data set.
cumTime	ia a vector of the cumulated times of the Time vector. It serves as an index for computation.

Value

returns the mean ineffieciency of each panel as a Nx1 vector

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