L_hnv_rho function

SSFA half-normal log likelihood function

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

L_hNV_rho(p, y = y, X = X, sc = sc, w = w, sigmau2_sar = sigmau2_sar)

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).
• w: the spatial weight matrix.
• sigmau2_sar: is the variance of the spatial correlated part of the inefficiency term estimated into ssfa.fit function.

Returns

Value of the SSFA log likelihood function.

Note

Please note that sigmau2_sar is not a free parameter because it is estimated into the ssfa.fit function.

See Also

ssfa