the \(\lambda=\sigma_u/\sigma_v\) parameter to be estimated

lambda_fan

the single response variable Y observed

resp

the conditional expectation estimate obtained in the first step of the algorithm

logical: TRUE for estimating a production function, FALSE for estimating a cost function; this is done for usage compatibility with frontier package

ineffD

Pseudolikelihood estimator of the \(\lambda\) parameter

Semiparametric Estimation of Stochastic Frontier Models following a two step procedure: in the first step semiparametric or nonparametric regression techniques are used to relax parametric restrictions of the functional form representing technology and in the second step variance parameters are obtained by pseudolikelihood estimators or by method of moments.

fan: Pseudolikelihood estimator of the \(\lambda\) parameter

Description

Usage

Arguments

Value

References