Hi there: Does anyone know how to estimate a minimum distance function in Stata? I have the parameters and the covariance matrix from an unrestricted production Stochastic Frontier function (one output and two inputs) and would like to estimate the following:
Br = argmin(Br - Bu)*IM*(Br - Bu) subject to fi(xi, Br) >= 0 for i=1,2 ; with IM the inverse of the cov matrix, Bu the Betas from the unrestricted model, Br the Betas from the restricted model and fi the derivative of the (frontier) production function (with respect to each of my two inputs). How can I to do this in Stata ?
Thank you all,
Juan
Br = argmin(Br - Bu)*IM*(Br - Bu) subject to fi(xi, Br) >= 0 for i=1,2 ; with IM the inverse of the cov matrix, Bu the Betas from the unrestricted model, Br the Betas from the restricted model and fi the derivative of the (frontier) production function (with respect to each of my two inputs). How can I to do this in Stata ?
Thank you all,
Juan
