Model frameworks for production or cost

• Normal-half normal
• Normal-truncated normal
• Normal-exponential
• Normal-gamma

Mean of the one sided (inefficiency) component

• E[U] = zero mean, the standard case
• E[U] = nonzero constant mean
• E[U] = a'z

Variance of the one sided (inefficiency) component

• Var[U] = homoscedastic
• Var[U] = exp(c'z) (heteroscedastic)

Variance of the firm specific (symmetric) component

• Var[v] = homoscedastic
• Var[v] = exp(d'w) (heteroscedastic)

Doubly heteroscedastic

Estimates of inefficiency measures with all formulations

Panel data formulations

• Random effects in specifications
• Fixed effects
• Fixed effect in production (cost) function
• Truncation model with fixed effects
• Fixed effects in mean of one sided component
• Fixed effects in variance of one sided component
• Random parameters
• Latent class
• Battese and Coelli panel data models

Analysis in parallel with stochastic frontier estimation and analysis (the only package available that has both of these methods in one program)

• Input and output oriented inefficiency – retained in the data set for further analysis
• Constant, increasing or nonincreasing returns to scale
• Economic and allocative inefficiency
• Bootstrapped confidence intervals for efficiency scores
• Malmquist total factor productivity indexes for panel data
• Listing of ‘peer’ firms with results