Output from the program FRONTIER (Version 4.1c) instruction file = terminal data file = 139npa.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 0.12089440E+02 0.40773887E+00 0.29649958E+02 beta 1 0.65253720E+00 0.90621599E-01 0.72006807E+01 beta 2 0.16016227E+00 0.50969626E-01 0.31423082E+01 beta 3 -0.64685369E-02 0.31040890E-01 -0.20838761E+00 beta 4 0.47094230E-01 0.63380769E-01 0.74303659E+00 beta 5 0.73508948E-02 0.46079616E-01 0.15952596E+00 sigma-squared 0.61387448E-01 log likelihood function = -0.22256163E+00 the estimates after the grid search were : beta 0 0.11877690E+02 beta 1 0.65253720E+00 beta 2 0.16016227E+00 beta 3 -0.64685369E-02 beta 4 0.47094230E-01 beta 5 0.73508948E-02 sigma-squared 0.10357571E+00 gamma 0.68000000E+00 mu is restricted to be zero eta is restricted to be zero iteration = 0 func evals = 20 llf = 0.10775223E+01 0.11877690E+02 0.65253720E+00 0.16016227E+00-0.64685369E-02 0.47094230E-01 0.73508948E-02 0.10357571E+00 0.68000000E+00 gradient step iteration = 5 func evals = 42 llf = 0.11686223E+01 0.11861178E+02 0.64155466E+00 0.16812454E+00-0.20668658E-02 0.54497947E-01 -0.15546236E-03 0.10242413E+00 0.67972483E+00 iteration = 10 func evals = 96 llf = 0.13458144E+01 0.11596513E+02 0.68929184E+00 0.15006631E+00-0.10459876E-02 0.31260531E-01 -0.29251051E-03 0.10835089E+00 0.72411185E+00 iteration = 12 func evals = 119 llf = 0.13458145E+01 0.11596552E+02 0.68928493E+00 0.15006942E+00-0.10459905E-02 0.31263087E-01 -0.29285570E-03 0.10835031E+00 0.72408235E+00 the final mle estimates are : coefficient standard-error t-ratio beta 0 0.11596552E+02 0.45040544E+00 0.25746918E+02 beta 1 0.68928493E+00 0.89981884E-01 0.76602634E+01 beta 2 0.15006942E+00 0.49386520E-01 0.30386717E+01 beta 3 -0.10459905E-02 0.30097255E-01 -0.34753683E-01 beta 4 0.31263087E-01 0.61413820E-01 0.50905622E+00 beta 5 -0.29285570E-03 0.44072040E-01 -0.66449318E-02 sigma-squared 0.10835031E+00 0.24136543E-01 0.44890569E+01 gamma 0.72408235E+00 0.13587076E+00 0.53291993E+01 mu is restricted to be zero eta is restricted to be zero log likelihood function = 0.13458145E+01 LR test of the one-sided error = 0.31367522E+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 : 0.20286506E+00 -0.35296864E-01 0.12923955E-01 -0.12870522E-03 0.16996592E-01 0.27807515E-02 -0.40906130E-02 -0.27376568E-01 -0.35296864E-01 0.80967394E-02 -0.38346498E-02 -0.24354700E-03 -0.37716690E-02 0.18192160E-03 0.42371802E-03 0.29222999E-02 0.12923955E-01 -0.38346498E-02 0.24390283E-02 0.15659017E-03 0.12491141E-02 -0.64486790E-04 -0.12261244E-03 -0.83780755E-03 -0.12870522E-03 -0.24354700E-03 0.15659017E-03 0.90584476E-03 -0.57145677E-03 0.28640769E-03 0.85386462E-04 0.60805689E-03 0.16996592E-01 -0.37716690E-02 0.12491141E-02 -0.57145677E-03 0.37716573E-02 -0.83353439E-04 -0.21223841E-03 -0.14769740E-02 0.27807515E-02 0.18192160E-03 -0.64486790E-04 0.28640769E-03 -0.83353439E-04 0.19423447E-02 -0.13256691E-03 -0.92816042E-03 -0.40906130E-02 0.42371802E-03 -0.12261244E-03 0.85386462E-04 -0.21223841E-03 -0.13256691E-03 0.58257270E-03 0.27426281E-02 -0.27376568E-01 0.29222999E-02 -0.83780755E-03 0.60805689E-03 -0.14769740E-02 -0.92816042E-03 0.27426281E-02 0.18460863E-01 cost efficiency estimates : firm eff.-est. 1 0.13388735E+01 2 0.11127308E+01 3 0.11236574E+01 4 0.10938593E+01 5 0.13673089E+01 6 0.11077356E+01 7 0.11109133E+01 8 0.12878110E+01 9 0.12485647E+01 10 0.11826673E+01 11 0.12338578E+01 12 0.14208733E+01 13 0.14483063E+01 14 0.12746166E+01 15 0.11979804E+01 16 0.10867962E+01 17 0.12421330E+01 18 0.11202313E+01 19 0.11340574E+01 20 0.12537913E+01 21 0.12876419E+01 22 0.16555906E+01 23 0.16880334E+01 24 0.11401098E+01 25 0.11226386E+01 26 0.12370602E+01 27 0.21674040E+01 28 0.11331063E+01 29 0.10416560E+01 30 0.19790364E+01 31 0.11508135E+01 32 0.12942934E+01 33 0.15311909E+01 34 0.14171760E+01 35 0.12251252E+01 36 0.11264269E+01 37 0.14361939E+01 38 0.12252195E+01 39 0.16855509E+01 40 0.14174112E+01 41 0.12150500E+01 42 0.17133511E+01 43 0.14866061E+01 44 0.16253461E+01 45 0.13320483E+01 46 0.10953729E+01 47 0.12251570E+01 48 0.10955458E+01 49 0.11888688E+01 50 0.11380743E+01 51 0.11605428E+01 52 0.12030573E+01 53 0.11058542E+01 54 0.12524053E+01 55 0.11997110E+01 56 0.12856406E+01 57 0.13543025E+01 58 0.16442708E+01 59 0.11606003E+01 60 0.12655798E+01 61 0.11657589E+01 62 0.11703632E+01 63 0.11441002E+01 64 0.12089542E+01 65 0.12467966E+01 66 0.15126264E+01 67 0.15125977E+01 68 0.13116316E+01 69 0.11765707E+01 70 0.15698112E+01 71 0.13303413E+01 72 0.12539739E+01 73 0.11613265E+01 74 0.11830554E+01 75 0.12733011E+01 76 0.12214754E+01 77 0.11655728E+01 78 0.11842530E+01 79 0.11810188E+01 80 0.11555595E+01 81 0.11735361E+01 82 0.14992463E+01 83 0.11251772E+01 84 0.11903845E+01 85 0.11667009E+01 86 0.11560457E+01 87 0.15162908E+01 88 0.11413410E+01 89 0.10752527E+01 90 0.11361139E+01 91 0.11409411E+01 92 0.11696262E+01 93 0.11920199E+01 94 0.13255101E+01 95 0.11304282E+01 96 0.14719562E+01 97 0.11898827E+01 98 0.11815219E+01 99 0.13478328E+01 100 0.12131701E+01 101 0.12964817E+01 102 0.11995119E+01 103 0.12959718E+01 104 0.11519329E+01 105 0.11683424E+01 106 0.12109478E+01 107 0.11302278E+01 108 0.12609905E+01 109 0.11717552E+01 110 0.12029624E+01 111 0.14952510E+01 112 0.12966417E+01 113 0.15398212E+01 114 0.12315706E+01 115 0.11985357E+01 116 0.10757861E+01 117 0.11270742E+01 118 0.17053965E+01 119 0.12015268E+01 120 0.11585640E+01 121 0.13277727E+01 122 0.12607160E+01 123 0.11940582E+01 124 0.11432602E+01 125 0.11601702E+01 126 0.12422166E+01 127 0.12635653E+01 128 0.11270339E+01 129 0.11452268E+01 130 0.13744728E+01 131 0.11360246E+01 132 0.13763606E+01 133 0.11361229E+01 134 0.11022016E+01 135 0.12260430E+01 136 0.11679765E+01 137 0.11945158E+01 138 0.13203091E+01 139 0.14945174E+01 mean efficiency = 0.12681997E+01