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According to the package description for "frontier", when extraPar is set to be TRUE, some additional parameters will be reported such as "sigmaSqU", "sigmaSqV" etc. However, it also states that "the sigmaSqU and sigmaU are not the variance and standard errors respectively of u".

So, my question is, what are sigmaSqU and sigmaU if they are not the variance and standard errors respectively of u?

Thank you very much.

rachel Huang
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1 Answers1

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Find a useful lecture notes which answers this question and is also informative with regard to stochastic frontier analysis using R. https://files.itslearning.com/data/ku/103018/teaching/lecturenotes.pdf?

rachel Huang
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