I estimated and saved technical efficiencies of the manufacturing industry using firm-level data for 5 countries over 5 years in a one-stage panel stochastic frontier model represented by Karakaplan and Kutlu (2017). The code is: XTSFKK.
I wanted to test the significance of differences in estimated technical efficiencies between countries and after a lot of searches concluded that suest doesn't work with panel data.
Then I tried to use the following code:
test cefficient1= coefficient2 , where coefficient one represents country1 and coefficient2 represents country2,
but couldn't get results.
Is there any other code that can be used for the stochastic frontier model?
Is it correct to conclude which country is the most technologically efficient based on the estimated coefficient of technical efficiency?
Thank you in advance!
Cheers
Zdenka
I wanted to test the significance of differences in estimated technical efficiencies between countries and after a lot of searches concluded that suest doesn't work with panel data.
Then I tried to use the following code:
test cefficient1= coefficient2 , where coefficient one represents country1 and coefficient2 represents country2,
but couldn't get results.
Is there any other code that can be used for the stochastic frontier model?
Is it correct to conclude which country is the most technologically efficient based on the estimated coefficient of technical efficiency?
Thank you in advance!
Cheers
Zdenka
