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RE: Estimating alternative profit frontiers [ Reply ]
By: Arne Henningsen on 2019-10-14 05:50
[forum:47007]
I am happy that you find the "frontier" package useful. Unfortunately, I do not understand your question. Please try to explain your question in more detail.

Estimating alternative profit frontiers [ Reply ]
By: fouad hamdani on 2019-07-15 13:39
[forum:46859]
Dear professor Henningsen,
I want to thank you for this package, it was of great help to me.
After estimating cost efficiency for a sample of banks using the command sfa(), I needed to estimate the alternative profit efficiency, the only difference between the two frontiers, other than the fact that cost has to be replaced by total profit after tax, lies in the efficiency term, since it needs to be negative, as in the production frontier, implying that inefficiency decreases profit. So, I wonder if estimating alternative profit efficiency using the production frontier is feasible ?
Thanks again!
Sincerely,
Fouad Hamdani

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