FRONTIER Procedure
PROC FRONTIER Features
The FRONTIER procedure can fit stochastic frontier production or cost models. On the basis of the parameterization of the inefficiency term, it supports three stochastic frontier models:
the half-normal model, where the inefficiency term is half-normally distributed
the exponential model, where the inefficiency term is exponentially distributed
the truncated-normal model, where the inefficiency term has a truncated-normal distribution with a truncation point at
The inefficiency term is assumed to be independently distributed among the observations.
The following list summarizes some of the basic features of PROC FRONTIER:
uses model-building syntax that includes CLASS and effect-based MODEL statements that are familiar from other SAS Econometrics analytic procedures
fits the stochastic frontier models by using maximum likelihood techniques
provides a TEST statement for performing linear tests of hypotheses
provides RESTRICT and BOUNDS statements for imposing linear parameter constraints
provides an OUTPUT statement for producing a data table that contains predictions, residuals, and technical efficiency terms
uses the WEIGHT statement for weighted analysis
uses the FREQ statement for grouped analysis
Because PROC FRONTIER runs on SAS Cloud Analytic Services (CAS), it also does the following:
enables you to run on a cluster of machines that distribute the data and the computations
enables you to run in single-machine mode
exploits all the available cores and concurrent threads. For information about how PROC FRONTIER uses threads, see the section Multithreading in Chapter 4, Shared Concepts.