I've estimated technical efficiency using stochastic frontier analysis. Now I want to estimate economic efficiency and allocative efficiency. However, I do not know how to find it out using Stata. Can anyone please let me know how I can conduct my analysis?
You can't estimate allocative efficiency based on technical efficiency (that is: solely based on a production function). These are two separate sources for efficiency. Also, note that combined technical efficiency and allocative efficiency constitute economic efficiency. To calculate economic efficiency you need to build, e.g., a cost function (then your "aim" function is cost minimization - an economic agenda). Then eventually you may try to disentangle between its two components - technical vs. allocative (google the so-called Greene problem by Kumbhakar). There you have two sources of proces inefficiency - technical (due to purely technically inefficient utilization of resources in production) or allocative (due to inefficient allocation of resources given their prices). So, I think your problem is not "where to click" in stata but how to build a function (which would not be a production function but, e.g., a cost function) for which you may measure economic efficiency and then "where to click" to get the technical and allocative breakdown.
Hope this helps.
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