Table 4.
Estimated stochastic frontier models (dependent variable: Infant survival rate).
| Variable | Kumbhakar (1990) | Battese and Collie (1995) | True Fixed Effects | True Random Effects |
|---|---|---|---|---|
| Production function | ||||
| Health spending | 0.0360*** | 0.0594*** | 1.7493*** | 0.0289*** |
| (0.0109) | (0.0108) | (0.6481) | (0.00573) | |
| Health spending squared | −0.00339*** | −0.00482*** | −0.1711*** | −0.00245*** |
| (0.000998) | (0.00114) | (0.0638) | (0.000546) | |
| Education | 0.0173 | 0.0211*** | −0.1794 | 0.0584*** |
| (0.0128) | (0.00582) | (0.11532) | (0.00343) | |
| Employment | 0.0271*** | 0.7684** | 0.0446*** | |
| (0.00707) | (0.35816) | (0.00345) | ||
| Share of population aged 65+ | 0.0108 | 0.0346 | −0.0231*** | |
| (0.00666) | (0.0690) | (0.00357) | ||
| Constant |
6.832*** | 6.603*** | NA | 6.680*** |
| (0.0305) |
(0.0395) |
(0.0231) |
||
| Model parameters | ||||
| Sigma u () | 0.167*** | 1.515** | 2.225*** | 0.006*** |
| (0.0383) | (0.8398) | (0.4358) | (0.0009) | |
| Sigma v () | 0.005*** | 0.008*** | 0.091*** | 0.002*** |
| (0.0005) | (0.0018) | (0.0072) | (0.0006) | |
| Lambda () | 33.95*** | 189.16*** | 24.33*** | 2.570*** |
| (0.0381) | (0.8393) | (0.6743) | (0.0013) | |
| Theta () | N/A | N/A | N/A | −0.038*** |
| (0.0015) | ||||
Clustered robust standard errors in parentheses; ***p < 0.01, **p < 0.05, *p < 0.1.