Productivity of Nations: A Stochastic Frontier Approach to TFP Decomposition

Table 1

Time-variant inefficiency model (Battese and coelli [12]).

Number of observations = 746 Number of countries = 75			Observations per country: minimum = 3
			Average = 9.9, maximum = 11
Log likelihood = 272.07096			Wald 𝜒^2 (8) = 14,540.41
			Prob > 𝜒^2 = 0.0000
ln𝑦	Coefficients	Standard error	𝑧	𝑃>𝑧	Confidence interval 95%
					Lower	Upper
𝛽𝑡	−0.1198	0.0455	−2.6300	0.0080	−0.2089	−0.0307
𝛽𝐾	0.2457	0.1330	1.8500	0.0650	−0.0149	0.5064
𝛽𝐿	0.3767	0.1883	2.0000	0.0450	0.0077	0.7458
𝛽𝑡𝑡	−0.0075	0.0015	−5.1300	0.0000	−0.0103	−0.0046
𝛽𝐾𝐾	0.0275	0.0111	2.4900	0.0130	0.0058	0.0492
𝛽𝐿𝐿	0.0572	0.0216	2.6500	0.0080	0.0150	0.0995
𝛽𝐾𝐿	−0.0605	0.0272	−2.2200	0.0260	−0.1138	−0.0072
𝛽𝐾𝑡	0.0106	0.0023	4.6100	0.0000	0.0061	0.0152
𝛽𝐿𝑡	−0.0063	0.0030	−2.1100	0.0350	−0.0121	−0.0004
𝛽0	8.8115	1.8366	4.8000	0.0000	5.2119	12.4111
𝜇	0.2074	0.0626	3.3100	0.0010	0.0846	0.3302
𝜂	0.0652	0.0116	5.5900	0.0000	0.0423	0.0880
ln𝜎^2	−2.7946	0.2291	−12.2000	0.0000	−3.2437	−2.3456
ilgt𝛾	0.6735	0.3514	1.9200	0.0550	−0.0153	1.3623
𝜎^2	0.0611	0.0140			0.0390	0.0958
𝛾	0.6623	0.0786			0.4962	0.7961
𝜎^2𝑢	0.0405	0.0140			0.0131	0.0679
𝜎^2𝑣	0.0206	0.0011			0.0184	0.0229