Output from the program FRONTIER (Version 4.1c) instruction file = terminal data file = sfam1d39.txt Error Components Frontier (see B&C 1992) The model is a cost function The dependent variable is logged the ols estimates are : coefficient standard-error t-ratio beta 0 0.22692844E+01 0.41719330E+00 0.54394077E+01 beta 1 0.64908313E+00 0.92722885E-01 0.70002473E+01 beta 2 0.98141586E-01 0.52151482E-01 0.18818561E+01 beta 3 0.11372177E-01 0.31760650E-01 0.35805870E+00 beta 4 0.39821131E-01 0.64850408E-01 0.61404596E+00 beta 5 0.37493499E-01 0.47148086E-01 0.79522845E+00 sigma-squared 0.64267294E-01 log likelihood function = -0.34088208E+01 the estimates after the grid search were : beta 0 0.20716955E+01 beta 1 0.64908313E+00 beta 2 0.98141586E-01 beta 3 0.11372177E-01 beta 4 0.39821131E-01 beta 5 0.37493499E-01 sigma-squared 0.10053457E+00 gamma 0.61000000E+00 mu is restricted to be zero eta is restricted to be zero iteration = 0 func evals = 20 llf = -0.25817817E+01 0.20716955E+01 0.64908313E+00 0.98141586E-01 0.11372177E-01 0.39821131E-01 0.37493499E-01 0.10053457E+00 0.61000000E+00 gradient step iteration = 5 func evals = 44 llf = -0.24957064E+01 0.20583629E+01 0.63688253E+00 0.10692504E+00 0.16426349E-01 0.48212929E-01 0.31908556E-01 0.99695000E-01 0.60979591E+00 iteration = 10 func evals = 98 llf = -0.23585756E+01 0.18171975E+01 0.67879590E+00 0.91344116E-01 0.17501433E-01 0.27996317E-01 0.31191604E-01 0.10610384E+00 0.66391676E+00 iteration = 12 func evals = 120 llf = -0.23585756E+01 0.18172918E+01 0.67877763E+00 0.91350309E-01 0.17501115E-01 0.28007648E-01 0.31190754E-01 0.10610470E+00 0.66390666E+00 the final mle estimates are : coefficient standard-error t-ratio beta 0 0.18172918E+01 0.46438889E+00 0.39132973E+01 beta 1 0.67877763E+00 0.92332065E-01 0.73514833E+01 beta 2 0.91350309E-01 0.50948229E-01 0.17930026E+01 beta 3 0.17501115E-01 0.31262482E-01 0.55981208E+00 beta 4 0.28007648E-01 0.63258675E-01 0.44274794E+00 beta 5 0.31190754E-01 0.45232603E-01 0.68956354E+00 sigma-squared 0.10610470E+00 0.25379385E-01 0.41807437E+01 gamma 0.66390666E+00 0.16599479E+00 0.39995633E+01 mu is restricted to be zero eta is restricted to be zero log likelihood function = -0.23585756E+01 LR test of the one-sided error = 0.21004904E+01 with number of restrictions = 1 [note that this statistic has a mixed chi-square distribution] number of iterations = 12 (maximum number of iterations set at : 100) number of cross-sections = 139 number of time periods = 1 total number of observations = 139 thus there are: 0 obsns not in the panel covariance matrix : 0.21565704E+00 -0.36882051E-01 0.13301508E-01 -0.37711794E-03 0.17768719E-01 0.26797478E-02 -0.46761383E-02 -0.36031388E-01 -0.36882051E-01 0.85252102E-02 -0.40523857E-02 -0.26414143E-03 -0.39708853E-02 0.23723695E-03 0.41124361E-03 0.33106548E-02 0.13301508E-01 -0.40523857E-02 0.25957220E-02 0.17772459E-03 0.13121084E-02 -0.98171434E-04 -0.76603724E-04 -0.62052052E-03 -0.37711794E-03 -0.26414143E-03 0.17772459E-03 0.97734281E-03 -0.58401798E-03 0.30058828E-03 0.10670621E-03 0.85657529E-03 0.17768719E-01 -0.39708853E-02 0.13121084E-02 -0.58401798E-03 0.40016599E-02 -0.73728749E-04 -0.20320269E-03 -0.16673147E-02 0.26797478E-02 0.23723695E-03 -0.98171434E-04 0.30058828E-03 -0.73728749E-04 0.20459884E-02 -0.12736393E-03 -0.10082721E-02 -0.46761383E-02 0.41124361E-03 -0.76603724E-04 0.10670621E-03 -0.20320269E-03 -0.12736393E-03 0.64411317E-03 0.36359456E-02 -0.36031388E-01 0.33106548E-02 -0.62052052E-03 0.85657529E-03 -0.16673147E-02 -0.10082721E-02 0.36359456E-02 0.27554269E-01 cost efficiency estimates : firm eff.-est. 1 0.13122597E+01 2 0.11341641E+01 3 0.11447408E+01 4 0.11418242E+01 5 0.11912088E+01 6 0.11124327E+01 7 0.12392265E+01 8 0.13473957E+01 9 0.12856635E+01 10 0.11237459E+01 11 0.12125407E+01 12 0.15250967E+01 13 0.13445712E+01 14 0.13099961E+01 15 0.12051402E+01 16 0.11097108E+01 17 0.11105409E+01 18 0.11364961E+01 19 0.11480913E+01 20 0.12114934E+01 21 0.12611304E+01 22 0.12951477E+01 23 0.15934747E+01 24 0.11531245E+01 25 0.11293854E+01 26 0.12514353E+01 27 0.20324739E+01 28 0.11921870E+01 29 0.10506380E+01 30 0.18039372E+01 31 0.11576965E+01 32 0.12061391E+01 33 0.16301684E+01 34 0.13460722E+01 35 0.12681484E+01 36 0.11370336E+01 37 0.12438043E+01 38 0.12719924E+01 39 0.16699797E+01 40 0.13650256E+01 41 0.12552139E+01 42 0.16764359E+01 43 0.13500860E+01 44 0.15783721E+01 45 0.11819060E+01 46 0.10980040E+01 47 0.13273548E+01 48 0.10993372E+01 49 0.10834329E+01 50 0.12536427E+01 51 0.11298106E+01 52 0.12191574E+01 53 0.11278254E+01 54 0.12937587E+01 55 0.11921742E+01 56 0.12840085E+01 57 0.15993069E+01 58 0.11473560E+01 59 0.11265909E+01 60 0.12997216E+01 61 0.12262797E+01 62 0.12352614E+01 63 0.11031182E+01 64 0.12999126E+01 65 0.11867141E+01 66 0.12653554E+01 67 0.14863213E+01 68 0.12832135E+01 69 0.12152495E+01 70 0.13197899E+01 71 0.13557858E+01 72 0.12947072E+01 73 0.11511346E+01 74 0.11539311E+01 75 0.12542748E+01 76 0.12891363E+01 77 0.11399831E+01 78 0.12254126E+01 79 0.11711973E+01 80 0.11616432E+01 81 0.11817587E+01 82 0.12661878E+01 83 0.11351979E+01 84 0.11113965E+01 85 0.12115038E+01 86 0.11323603E+01 87 0.16796632E+01 88 0.11689408E+01 89 0.10586792E+01 90 0.11557950E+01 91 0.11611466E+01 92 0.12057926E+01 93 0.11866866E+01 94 0.12476524E+01 95 0.11335195E+01 96 0.13861494E+01 97 0.11924381E+01 98 0.11639295E+01 99 0.13685396E+01 100 0.11203987E+01 101 0.12845872E+01 102 0.11899171E+01 103 0.12121526E+01 104 0.11849503E+01 105 0.11396645E+01 106 0.12166391E+01 107 0.11346605E+01 108 0.12320416E+01 109 0.11982536E+01 110 0.12764543E+01 111 0.14738196E+01 112 0.12240581E+01 113 0.13911625E+01 114 0.12700485E+01 115 0.12896339E+01 116 0.10982217E+01 117 0.11559682E+01 118 0.16883599E+01 119 0.12408299E+01 120 0.11366888E+01 121 0.13078567E+01 122 0.12276723E+01 123 0.12252101E+01 124 0.11359891E+01 125 0.11226120E+01 126 0.13038356E+01 127 0.13666238E+01 128 0.11446386E+01 129 0.12465908E+01 130 0.13287552E+01 131 0.11574104E+01 132 0.11561910E+01 133 0.11275313E+01 134 0.11105179E+01 135 0.11790912E+01 136 0.11515054E+01 137 0.11491783E+01 138 0.12885236E+01 139 0.13930661E+01 mean efficiency = 0.12516252E+01