fan function

Pseudolikelihood estimator of the $\lambda$ parameter

fan(lambda_fan, resp, Ey, ineffD)

Arguments

• lambda_fan: the $\lambda=\sigma_u/\sigma_v$ parameter to be estimated
• resp: the single response variable Y observed
• Ey: the conditional expectation estimate obtained in the first step of the algorithm
• ineffD: logical: TRUE for estimating a production function, FALSE for estimating a cost function; this is done for usage compatibility with frontier package

Returns

Estimated $\lambda$ parameter

References

Fan, Y., Li, Q., Weersink, A., 1996. Semiparametric estimation of stochastic production frontier models. Journal of Business & Economic Statistics 14:460-468

Author(s)

Giancarlo Ferrara and Francesco Vidoli

Note

Internal usage only