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Fitting endogenous stochastic frontier models in Stata


  • Mustafa U. Karakaplan

    (Georgetown University)


In this article, I introduce sfkk, a new command for fitting endogenous stochastic frontier models. sfkk provides estimators for the parameters of a linear model with a disturbance assumed to be a mixture of two components: a mea- sure of inefficiency that is strictly nonnegative and a two-sided error term from a symmetric distribution. sfkk can handle endogenous variables in the frontier or the inefficiency, and the sfkk estimates outperform the standard frontier estimates that ignore endogeneity.

Suggested Citation

  • Mustafa U. Karakaplan, 2017. "Fitting endogenous stochastic frontier models in Stata," Stata Journal, StataCorp LP, vol. 17(1), pages 39-55, March.
  • Handle: RePEc:tsj:stataj:v:17:y:2017:i:1:p:39-55
    Note: to access software from within Stata, net describe

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    Cited by:

    1. Mohammad Ariful Islam & Seiichi Fukui, 2018. "The influence of share tenancy contracts on the cost efficiency of rice production during the Bangladeshi wet season," Economics Bulletin, AccessEcon, vol. 38(4), pages 2431-2443.
    2. Doanh Khanh Nguyen & Van Ngoc Thi Pham & Heo, Yoon, 2019. "Impact of institutional and cultural distance on ASEAN's trade efficiency," Economics Discussion Papers 2019-57, Kiel Institute for the World Economy (IfW).
    3. Bao Hoang Nguyen & Robin C. Sickles & Valentin Zelenyuk, 2021. "What do we know from the vast literature on efficiency and productivity in healthcare? A Systematic Review and Bibliometric Analysis," CEPA Working Papers Series WP092021, School of Economics, University of Queensland, Australia.
    4. Su, Hung-Chung & Kao, Ta-Wei (Daniel) & Linderman, Kevin, 2020. "Where in the supply chain network does ISO 9001 improve firm productivity?," European Journal of Operational Research, Elsevier, vol. 283(2), pages 530-540.
    5. Andrea Bonfiglio & Roberto Henke & Fabio Pierangeli & Maria Rosaria Pupo D'Andrea, 2020. "Effects of redistributing policy support on farmers’ technical efficiency," Agricultural Economics, International Association of Agricultural Economists, vol. 51(2), pages 305-320, March.
    6. Gaganis, Chrysovalantis & Galariotis, Emilios & Pasiouras, Fotios & Staikouras, Christos, 2020. "Bank profit efficiency and financial consumer protection policies," Journal of Business Research, Elsevier, vol. 118(C), pages 98-116.
    7. Hayatullah Ahmadzai, 2017. "Crop Diversification and Technical Efficiency in Afghanistan: Stochastic Frontier Analysis," Discussion Papers 2017-04, University of Nottingham, CREDIT.
    8. Mustafa U. Karakaplan & Levent Kutlu, 2019. "School district consolidation policies: endogenous cost inefficiency and saving reversals," Empirical Economics, Springer, vol. 56(5), pages 1729-1768, May.


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