Estimating translog cost function

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Estimating translog cost function

FredVer
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Hey all,

Im estimating my translog cost function, with panel data for 33 different countries, 10 years on individual bank data. I use the xtfrontier command, but dont know if its right. The TCF needs to be specified for every country seperately and I include year and specialization dummies (4 types banks). now i run this command for every country...:
xtfrontier lntc beta1 beta2 beta4 beta5 gamma11 gamma12 gamma14 gamma22 gamma24 gamma44 gamma55 i.year i.spec2 if councode=="AU", tvd cost


but it runs and runs but I get no values. my iterations are every time above 50...what am i doing wrong and can someone please help me out?
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Re: Estimating translog cost function

FredVer
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i need to specify that my panel data is unbalanced. The TCF is used as a step before to come to my marginal costs! And these marginal costs must be inplemented in two functions to get the Lerner index and the Boone indicator...The paper by van leuvensteijn et al is my guide!
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Re: Estimating translog cost function

latif
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In reply to this post by FredVer
Hi STAT users,
                 I want to estimate marginal cost using the translog cost function in STATA. Please can I get the STATA command for predicting the MC after estimating the translog cost function. Thank You.