Ortega Irizo, Francisco Javier Gavilán Ruiz, José Manuel
Year of Publication:
[Journal:] Revista de Métodos Cuantitativos para la Economía y la Empresa [ISSN:] 1886-516X [Volume:] 11 [Year:] 2011 [Pages:] 3-16
Using the maximum likelihood method, in order to estimate Half-Normal stochastic frontier production models, entails several practical di±culties that, perhaps, have not been su±ciently emphasised. In employing FRONTIER software, we analyse the case in which the estimation obtained suggests the absence of random factors in the composite error term. We have proved that there are reasons to doubt the validity of the parameter estimates and especially of its standard errors. On the other hand, no estimation is obtained in the previous situation, with LIMDEP software, but an error message.
stochastic frontier deterministic frontier maximum likelihood estimator software FRONTIER