Estimate Allocative Efficiency using IZEF in Stata
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Description
Experience Level: Entry
I have price data on a particular sector. I need to estimate allocative efficiency using the IZEF method with a translog cost function, but am struggling to incorporate the factor of proportionality in my commands (my command is -nlsur-). I can share the papers I am trying to replicate but I really only need a little guidance on this one command to add the inefficiency parameters to it.

Ayesha I.
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Can you share paper you are replicating, the code you have so far, and first few rows of data set?
Ayesha I.23 Dec 2020I cannot share the data outside my institution, but it is simply output, total cost and input prices of a few firms. The paper I am following is "Input allocation efficiency in the United States railroad industry:
Changing work rules and managerial flexibility" by Azrina Abdullah Al-Hadia, John Bitzanb, James Peoples
My code has the nlsur command followed by its standard syntax for, in my case, the translog cost function. I just don't know how to add the distortion parameter/allocative efficiency paramter ('g' in the paper) to it.
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