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The Stata Journal
Volume 17 Number 1: pp. 39-55

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Fitting endogenous stochastic frontier models in Stata

Mustafa U. Karakaplan
Georgetown University
Department of Economics
Washington, DC
Abstract.  In this article, I introduce sfkk, a new command for fitting endogenous stochastic frontier models. sfkk provides estimators for the parameters of a linear model with a disturbance assumed to be a mixture of two components: a measure of inefficiency that is strictly nonnegative and a two-sided error term from a symmetric distribution. sfkk can handle endogenous variables in the frontier or the inefficiency, and the sfkk estimates outperform the standard frontier estimates that ignore endogeneity.

View all articles by this author: Mustafa U. Karakaplan

View all articles with these keywords: sfkk, endogeneity, endogenous stochastic frontier models, production frontier, cost frontier, endogenous inefficiency

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