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emw6
2008 Jun 16
1
Error in maximum likelihood estimation.
...sigma2)
-sum(log(pnorm(d))) + sum(log(pnorm(dstar))))
return(-loglik)
}
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Loglikelihood function is from page 21of Battese and Coelli (1993).
(You can download this article at http://www.une.edu.au/economics/publications/econometrics/emwp69.PDF
)
To test the above function with an artificial data set, I created the
following data.frame.
-----------------------------------------------
x1 <- abs(rnorm(100))*100
x2 <- abs(rnorm(100))*10
z1 <- abs(rnorm(100))*5
z2 <- abs(rnorm(100))*7
y <- abs(0.3 + 0.3* log(x1) + 0....