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| RE: Efficiency and mean efficiency estimation [ Reply ] By: Arne Henningsen on 2012-08-02 17:02 | [forum:8843] |
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Dear Akhilesh Please do not post the same message in two different threads: https://r-forge.r-project.org/forum/forum.php?thread_id=6125&forum_id=908&group_id=275 /Arne |
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| RE: Efficiency and mean efficiency estimation [ Reply ] By: AKHILESH VERMA on 2012-07-26 14:21 | [forum:8026] |
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Hi Arne, I have made changes you suggested in the mail. Second problem regarding gamma coming zero is also my concern,still not able to figure out why it is coming as such with real dataset.Because real firms could not be entirely inefficient or efficient.It would be helpful if you could suggest something on this. Even then, I think result should come same from both because R frontier uses .Fortran version of frontier4.1 . I have incorporated other suggestion but couldn't find the same results. So i am attaching modified files with results obtained from both. Please let me know reason for different results. Thanks and Regards, Akhilesh |
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| RE: Efficiency and mean efficiency estimation [ Reply ] By: Arne Henningsen on 2012-07-24 08:19 | [forum:7879] |
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Dear Akhilesh 1) I do not fully understand your first question but you could take a look at the documentation of FRONTIER 4.1, which the R package "frontier" is based on, see the third point in section "What is frontier" on frontier's website: http://frontier.r-forge.r-project.org/ 2) The mean efficiency is calculated as (1/N) * sum_i Eff_i where N indicates the total number of firms and Eff_i is the efficiency estimate of the i'th firm with Eff_i = E[ exp(-u_i) | epsilon_i ], where epsilon_i = v_i - u_i is the total residual, which consists of a random error term v_i and an inefficiency term u_i. Best regards, Arne |
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| Efficiency and mean efficiency estimation [ Reply ] By: AKHILESH VERMA on 2012-07-24 05:54 | [forum:7875] |
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Hi, I have two question regarding frontier package in R which are following- (1) How the efficiency is calculated ? Is it e_{it) or e^u. Apart from this, if it is documented. please let me know the source. (2) How the mean efficiency is estimated ? Is it E(e^u) or e^E(u). Please answer ASAP. Thank you |
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