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RE: Constant efficiency if timeEffect=FALSE [ Reply ]
By: Arne Henningsen on 2019-10-14 06:08
[forum:47010]
It sounds like your results are exactly as expected given the model specifications that you chose. I suggest that you take a look at different specifications of the SFA models, e.g., at [1] and/or at section 6 of [2].

[1] https://absalon.ku.dk/eportfolios/97/entries/124/files/eRLBmNpiTgduh7KxfYdqVZoUQkQNmddw315zb386

[2] https://leanpub.com/ProdEconR

Constant efficiency if timeEffect=FALSE [ Reply ]
By: Maciej Wawrzyniak on 2019-07-15 19:51
[forum:46860]
Dear All,

I am workings with the frontier package for my PhD thesis and I have strange issue with the trans log function estimated using frontierQuad function. If i set timeEffect=FALSE I get an efficiency estimations constant for all T i.e. each observations have that same level of efficiency for each T.

As far as I understand package and its functionality this option should lead to „unique” efficiency estimations for each combination observation-time, with no time effect. Initially, I thought that it can be some issue with my data, however if i set timeEffect=TRUE, i have a reasonable output.
I would be very grateful, if somebody could assist me with this matter.

I have information about 24 companies for 5 year (so n=24 and t=5). Number of actual observations is slightly smaller, as panel is unbalanced (In total i have 4 gaps In observations).
Please find below some additionaly details regarding my data set structure.

Observations T Output Input1 Input2 Input3
1 1 Log(Y) Log(x1) Log(x2) Log(x3)
1 2 ….. ….. ….. …..
1 3 ….. ….. ….. …..
1 4 ….. ….. ….. …..
1 5 ….. ….. ….. …..
2 1 ….. ….. ….. …..
2 2 ….. ….. ….. …..
….. ….. ….. ….. ….. …..


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