L_hnv function

SFA half-normal log likelihood function

This function is used to estimate the parameters of the classical SFA model where half-normal distribution of inefficiency term is assumed.

L_hNV(p, y = y, X = X, sc = sc)

Arguments

• p: a vector with the parameters to be estimated.
• y: the dependent variable.
• X: the model matrix.
• sc: specifies the form of the frontier model (-1 = cost, 1 = production).

Returns

Value of the SFA log likelihood function.