Panel Stochastic Frontier Model With Endogeneity in Stata

This video illustrates how to estimate a panel stochastic frontier model in Stata when one or more variables are endogenous using the instrumental variable approach proposed by Karakaplan, Mustafa U. (2022). In this example, a Cobb-Douglas functional form is assumed using data on 42 South African industries from 1993 to 2023. Intermediate imports are added in the inefficiency specification are are presumed to be endogenous. Import penetration which proxy the level of industrial openness are treated as the instrument. Please like and subscribe to my channel (if you haven't). Kindly put your email address in the comment section if you want the dataset used in the video or do file for replication.

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Thanks. Your videos helped me a lot