A Practitioner’s Guide to Stochastic Frontier Analysis Using Stata

A Practitioner’s Guide to Stochastic Frontier Analysis Using Stata by Subal C. Kumbhakar, published by Cambridge University Press on January 26, 2015, is an illustrated edition comprising 374 pages. This book serves as a comprehensive resource for practitioners in both academia and industry, detailing the process of conducting efficiency analysis through the stochastic frontier approach. It covers the estimation of production, cost, and profit efficiency while presenting the fundamental theories behind each model in an accessible manner, supported by empirical examples.

Readers will find a thorough exploration of various stochastic frontier models, including those addressing heteroscedasticity and exogenous factors influencing inefficiency. The book also introduces scaling models, panel models with time-varying inefficiency, and growth models, among others. Additionally, it provides computer code to facilitate the application of these models in practical work. By bridging the gap between theory and practice, this guide expands the potential applications of production frontier analysis, making it a valuable tool for applied researchers in the fields of business, economics, and statistics.