sfaFLW: Semiparameric SFA of Fan, Lee, and Weersink (1996)

In npFrontier: Non-Parametric and Semi-Parametric Stochastic Frontier Analysis

Description

Estimate the Semiparameric Stochastic Frontier Model suggested by Fan, Lee, and Weersink (1996).

Usage

sfaFLW( formula, data = sys.frame( sys.parent() ),
  bwmethod = "cv.ls", npArg = list() )

Arguments

formula	a symbolic description of the model to be estimated.
data	optional data frame that contains the data.
bwmethod	bandwidth selection method: if it is "rot", FLW's rule-of-thumb is applied; otherwise, this argument is passed further to npregbw.
npArg	list of additional arguments that are passed to npregbw.

Value

sfaFLW returns a list of class sfaFLW containing following elements:

npreg	object returned by npreg containing the results of the nonparametric regression (first step).
mu	numeric scalar containing the bias correction μ = σ √{ ( 2 λ^2 / π ) / ( 1 + λ^2 ) }, obtained in the maximum likelihood estimation (second step).
sigma.sq	numeric scalar. σ^2 = σ_u^2 + σ_v^2, obtained in the maximum likelihood estimation (second step).
lambda	numeric scalar. λ = σ_u / σ_v, obtained in the maximum likelihood estimation (second step).
sigma.u	numeric scalar. σ_u, obtained in the maximum likelihood estimation (second step).
sigma.v	numeric. σ_v, obtained in the maximum likelihood estimation (second step).

Author(s)

Christopher F. Parmeter

References

Fan, Y., Q. Li, and A. Weersink (1996): Semiparametric Estimation of Stochastic Production Frontier Models. Journal of Business and Economic Statistics 14, 460-468.

See Also

residuals.sfaFLW for obtaining residuals, fitted.sfaFLW for obtaining fitted values, gradients.sfaFLW for obtaining gradients, and sfa for parametric stochastic frontier analysis.

Examples

  # example included in FRONTIER 4.1 (cross-section data)
  data( front41Data, package = "frontier" )

  # semiparametric local-constant Cobb-Douglas production frontier
  FLW_Result <- sfaFLW( log( output ) ~ log( capital ) + log( labour ),
    data = front41Data )
  FLW_Result

  # semiparametric local-linear Cobb-Douglas production frontier
  FLW_Result_ll <- sfaFLW( log( output ) ~ log( capital ) + log( labour ),
    data = front41Data, npArg = list( regtype = "ll" ) )
  FLW_Result_ll

npFrontier documentation built on May 2, 2019, 4:48 p.m.