Dear Statalist,
I've tried to analyze unbalanced panel data by applying Greene's model(2005) in stochastic frontier analysis.
The code was as follows; sfpanel lny lnx charno_dum2 charno_dum3 lnxd2 lnxd3, model(tfe)
where "charno_dum2" and "charno_dum3" are dummy variables representing the characteristics of the projects.(reference group : charno_dum1)
"lnxd2" and "lnxd3" are interaction terms between the independent variable(lnx) and each dummy variable.
The results showed that only sigma_v was not significant as follows;

How can I interpret this result?
Thank you in advance.
I've tried to analyze unbalanced panel data by applying Greene's model(2005) in stochastic frontier analysis.
The code was as follows; sfpanel lny lnx charno_dum2 charno_dum3 lnxd2 lnxd3, model(tfe)
where "charno_dum2" and "charno_dum3" are dummy variables representing the characteristics of the projects.(reference group : charno_dum1)
"lnxd2" and "lnxd3" are interaction terms between the independent variable(lnx) and each dummy variable.
The results showed that only sigma_v was not significant as follows;
How can I interpret this result?
Thank you in advance.