Table 2 Maximum likelihood estimates of classical and spatial stochastic frontier models, 2007–08, India
MODEL 1 | MODEL 2 | MODEL 3 | MODEL 4 | |
|---|---|---|---|---|
Production function | ||||
Constant | 0.8616 (0.0705)*** | 1.2178 (0.0652)*** | 1.7013 (0.0799)*** | 1.6790 (0.0794)*** |
x1 | 0.0822 (0.0282)*** | 0.0481 (0.0237)** | 0.0746 (0.0238)*** | 0.0804 (0.0244)*** |
x2 | 0.1080 (0.0346)*** | 0.1532 (0.0281)*** | 0.1044 (0.0268)*** | 0.1201 (0.0266)*** |
x3 | 0.1587 (0.0378)*** | 0.0426 (0.0343) | −0.0207 (0.0344) | −0.0180 (0.0343) |
x4 | 0.1557 (0.0351)*** | 0.0651 (0.0292)** | 0.0814 (0.0274) *** | 0.0857 (0.0280) *** |
γ (Heterogeneity index) | −0.8317 (0.0566)*** | −0.6972 (0.0573)*** | −0.8623 (0.0559)*** | |
ρ (Lagged output) | 0.4588 (0.0493) *** | |||
φ (Inefficiency lag) | 0.4465 (0.0462) *** | |||
Inefficiency | ||||
Constant | −0.2091 (0.2024) | −0.2193 (0.1780) | −0.7763 (0.2226)*** | −0.9486 (0.2570)*** |
z1 | 0.6349 (0.1175)*** | 0.4457 (0.1014)*** | 0.3972 (0.1087)*** | 0.3827 (0.1134)*** |
z2 | −0.6651 (0.1432)*** | −0.6417 (0.1236)*** | −0.9082 (0.1868)*** | −0.9945 (0.2186)*** |
z3 | −0.0874 (0.1114) | −0.0305 (0.1011) | −0.1132 (0.1123) | −0.1043 (0.1170) |
Predicted mean inefficiency | 0.4709 | 0.4592 | 0.3950 | 0.3756 |
Distributions of u and v | ||||
δu | 1.0664 | 0.9989 | 0.7995 | 0.7437 |
δv | 0.4536 | 0.3088 | 0.3626 | 0.3852 |
λ | 2.35 | 3.24 | 2.2049 | 1.9307 |
Log likelihood | −549.2938*** | −468.0001*** | −426.2494*** | −423.7609*** |
N | 499 | 499 | 499 | 499 |