The idea is to use stochastic frontier in a different field with respect to its original aim. DEA, for example, more flexible is used to model many research question non ncecessarily linked to efficiency.
I'd like tu use stochastic frontier to obtain a single score that sintetizes different ratio used to analyse monitoring process in bank
Revenue efficiency, technical efficiency. however these are very similar to profit and production efficiency.
Yes, it could be! The essential question is do the assumptions make sense for your proposed use. That will mean not only choosing an appropriate functional form to combine the ratios but also considering if the proposed error terms make have some meaning in your proposed model and the distributions for them are what would be expected. It is the question of the error terms and there distributions that is key as this is the reason for using a stochastic frontier method
I would say that it depends on what you would like to assess. SFA provides a specif impact of the regressors in the dependent variable, but some assumptions must be made prior to running the model. There is certain flexibility in the variables that you may use. If further information can be provided regarding your research aim I could be more helpful.
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