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Fitting spatial stochastic frontier models in Stata

Kerui Du, Luis Orea and Inmaculada Álvarez

No 2023/04, Efficiency Series Papers from University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG)

Abstract: In this article, we introduce a new command spxtsfa for fitting spatial stochastic frontier models in Stata. Over the last decades, an important theoretical progress of stochastic frontier models is the incorporation of various types of spatial components. Models with the ability to account for spatial dependence and spillovers have been developed for efficiency and productivity analysis, drawing extensive attention from industry and academia. Due to the unavailability of the statistical packages, the empirical applications of the new stochastic frontier models appear to be lagging. The spxtsfa command provides a routine for estimating the spatial stochastic frontier models in the style of Orea and Álvarez (2019) and Galli (2022), enabling users to handle different sources of spatial dependence. In the presented article, we introduce the spatial stochastic frontier models, describe the syntax and options of the new command, and provide several examples to illustrate its usage.

Pages: 14
Date: 2023
New Economics Papers: this item is included in nep-eff, nep-geo and nep-ure
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