Table II. Parameter estimates of the...

Table II.

Parameter estimates of the frontier matching function

	Model I (Base model)		Model II (Heteroscedasticity in the inefficiency)		Model IIIA (Random parameter in the inefficiency without z4)		Model IIIB (Random parameter in the inefficiency with z4)
Variable	Coeff	t-ratio	Coeff	t-ratio	Coeff	t-ratio	Coeff	t-ratio
Production Frontier
Intercept	−0.534***	−2.90	−0.959***	−5.45	−0.243	−1.64	−0.316^**	−2.16
ln U	0.076***	4.52	0.059***	4.37	0.059***	5.21	0.057***	4.55
ln V	0.347***	8.72	0.372***	10.26	0.275***	8.57	0.279***	8.45
ln C	−0.165	−1.50	0.751***	4.67	0.414***	2.73	0.437***	3.06
ln E	0.578***	16.85	0.582***	18.84	0.611***	20.20	0.617***	19.51
Inefficiency
Intercept (σ²_u)			24.916***	3.36
z₁ (σ²_u)			−45.927^**	−2.34	−13.224***	−4.39	−12.049***	−3.63
z₂ (σ²_u)			−20.498	−0.79	10.839^**	2.25	10.879^**	2.02
z₃ (σ²_u)			−21.129	−0.66	−9.216***	−2.60	−12.517***	−2.35
z₄ (σ²_u)							12.481	1.19
τ_i					6.981***	6.61	2.811***	6.04
σ²τ_i					0.667***	4.39	0.696***	4.13
σ_u	0.195		0.204		0.169		0.153
Mean efficiency	0.846		0.941		0.871		0.873
SD efficiency	0.072		0.153		0.101		0.098
Log likelihood function	30.275		71.997		76.538		76.798
Number of observations	300		300		300		300

	Model I (Base model)		Model II (Heteroscedasticity in the inefficiency)		Model IIIA (Random parameterin the inefficiency without z4)		Model IIIB (Random parameter in the inefficiency with z4)
Variable	Coeff	t-ratio	Coeff	t-ratio	Coeff	t-ratio	Coeff	t-ratio
Production Frontier
Intercept	−0.534***	−2.90	−0.959***	−5.45	−0.243	−1.64	−0.316^**	−2.16
ln U	0.076***	4.52	0.059***	4.37	0.059***	5.21	0.057***	4.55
ln V	0.347***	8.72	0.372***	10.26	0.275***	8.57	0.279***	8.45
ln C	−0.165	−1.50	0.751***	4.67	0.414***	2.73	0.437***	3.06
ln E	0.578***	16.85	0.582***	18.84	0.611***	20.20	0.617***	19.51
Inefficiency
Intercept (σ²_u)			24.916***	3.36
z₁ (σ²_u)			−45.927^**	−2.34	−13.224***	−4.39	−12.049***	−3.63
z₂ (σ²_u)			−20.498	−0.79	10.839^**	2.25	10.879^**	2.02
z₃ (σ²_u)			−21.129	−0.66	−9.216***	−2.60	−12.517***	−2.35
z₄ (σ²_u)							12.481	1.19
τ_i					6.981***	6.61	2.811***	6.04
σ²τ_i					0.667***	4.39	0.696***	4.13
σ_u	0.195		0.204		0.169		0.153
Mean efficiency	0.846		0.941		0.871		0.873
SD efficiency	0.072		0.153		0.101		0.098
Log likelihood function	30.275		71.997		76.538		76.798
Number of observations	300		300		300		300

Note:

Significance code:

*p < 0.1;

**p < 0.05;

***p < 0.01