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  • Error message when running code for Stochastic Frontier Analysis

    When I use the following code in Stata for Stochastic Frontier Analysis, I'm getting an error message that I can't figure out.

    Context: determining the efficiency of nonprofit organizations; output = # of participants; inputs = program and admin expenses, # of full-time equivalent employees and volunteers, years 2008-2018

    sfpanel lnparticipants lnprogram lnadmin lntotal_FTE_employees lntotal_FTE_volunteers fiscal_year, model(tfe)

    Warning: only units with more than 1 time occasion will be considered
    unable to allocate matrix;
    You have attempted to create a matrix with too many rows or columns or attempted to fit a model with
    too many variables.

    You are using Stata/BE which supports matrices with up to 800 rows or columns. See limits for how
    many more rows and columns Stata/SE and Stata/MP can support.

    If you are using factor variables and included an interaction that has lots of missing cells, try set
    emptycells drop to reduce the required matrix size; see help set emptycells.

    If you are using factor variables, you might have accidentally treated a continuous variable as a
    categorical, resulting in lots of categories. Use the c. operator on such variables.
    r(915);

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