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2012_13
2013 Apr 25
1
Stochastic Frontier: Finding the optimal scale/scale efficiency by "frontier" package
Hi,
I am trying to find out the scale efficiency and optimal scale of banks
by stochastic frontier analysis given the panel data of bank. I am free to
choose any model of stochastic frontier analysis.
The only approach I know to work with R is to estimate a translog
production function by sfa or other related function in frontier package,
and then use the Ray 1998 formula to find the scale