Can I use Stochastic Frontier Analysis'(SFA) predicted Technical Efficiency (te) as a dependent variable of IV regression (GMM)?

30 April 2020 0 3K Report

In Stochastic Frontier Analysis (SFA), STATA provides technical efficiency (te) score of every observation. I am wandering whether there is any technical issue if I use this 'te' as dependent variable of IV regression or I should stick to the emean Fixed effect of SFA.

your response will highly be appreciated

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