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Econometrics Procedures
 

FRONTIER Procedure

MODEL Statement

  • MODEL dependent-variable = regressors </ options>;

The MODEL statement specifies the dependent variable and independent regressor variables for a stochastic frontier model.

Only one MODEL statement can be specified. You can specify the following options after a slash (/):

COST | PRODUCTION

specifies that the estimated model be a cost or production function.

If neither COST nor PRODUCTION is specified, a production function is estimated by default.

NOINT

suppresses the intercept parameter.

TYPE=EXPONENTIAL | HALF | TRUNCATED
DIST=EXPONENTIAL | HALF | TRUNCATED

specifies the type of distribution for the inefficiency term. You can specify the following types:

EXPONENTIAL

specifies an exponential distribution for the inefficiency term.

HALF

specifies a half-normal distribution for the inefficiency term.

TRUNCATED

specifies a truncated-normal distribution for the inefficiency term.

By default, TYPE=EXPONENTIAL.

Last updated: July 09, 2026