I am calculating total factor productivity by the SFA model in using STATA.
When I run the TFP estimation, it gives this warning "convergence not achieved"
Do you know the reasons for these errors? and how can I fix it?
Thank you very much!
Code:
..... . matrix b1 = e(b) . sfmodel lny, prod dist(h) frontier($xvar_prod) usigmas(t) vsigmas() . sf_init, frontier(b1) usigmas(0 0) vsigmas(0) . ml max, difficult gtol(1e-5) nrtol(1e-5) initial: log likelihood = -2429.7833 rescale: log likelihood = -2429.7833 rescale eq: log likelihood = -2429.7833 Iteration 0: log likelihood = -2429.7833 (not concave) Iteration 1: log likelihood = -1588.3033 (not concave) Iteration 2: log likelihood = -903.5015 (not concave) ............... Iteration 15997: log likelihood = 12249.385 (not concave) Iteration 15998: log likelihood = 12249.396 (not concave) Iteration 15999: log likelihood = 12249.407 (not concave) Iteration 16000: log likelihood = 12249.418 (not concave) convergence not achieved Number of obs = 1,920 Wald chi2(27) = 6.49e+09 Log likelihood = 12249.418 Prob > chi2 = 0.0000 ------------------------------------------------------------------------------ lny | Coef. Std. Err. z P>|z| [95% Conf. Interval] -------------+---------------------------------------------------------------- frontier | lnx1 | -.0032105 .001224 -2.62 0.009 -.0056094 -.0008116 lnx2 | .0008623 .0003733 2.31 0.021 .0001307 .0015939 lnx3 | -.0028025 .0008357 -3.35 0.001 -.0044404 -.0011645 lnx4 | 1.12896 .0152639 73.96 0.000 1.099044 1.158877 lnx5 | -.1275546 .0151461 -8.42 0.000 -.1572404 -.0978689 t | -.0060357 .0006953 -8.68 0.000 -.0073984 -.0046729 lnx12 | .0000333 .0000956 0.35 0.728 -.0001541 .0002206 lnx22 | -.0000165 .0000175 -0.94 0.346 -.0000508 .0000178 lnx32 | .0000985 .0000693 1.42 0.155 -.0000373 .0002344 lnx42 | .0633521 .0078738 8.05 0.000 .0479198 .0787844 lnx52 | .0630039 .007834 8.04 0.000 .0476495 .0783583 t2 | .0001387 .0000163 8.52 0.000 .0001068 .0001706 lnx1lnx2 | .0000402 .0000403 1.00 0.319 -.0000388 .0001191 lnx1lnx3 | .0000817 .0000882 0.93 0.354 -.0000912 .0002547 lnx1lnx4 | -.0009159 .0003878 -2.36 0.018 -.0016759 -.0001559 lnx1lnx5 | .0009364 .0003786 2.47 0.013 .0001944 .0016784 lnx1t | .0000484 .0000177 2.73 0.006 .0000137 .0000832 lnx2lnx3 | -.0000165 .0000306 -0.54 0.589 -.0000764 .0000434 lnx2lnx4 | .0002069 .000124 1.67 0.095 -.0000361 .0004499 lnx2lnx5 | -.0002607 .0001251 -2.08 0.037 -.000506 -.0000154 lnx2t | -9.77e-06 5.64e-06 -1.73 0.083 -.0000208 1.29e-06 lnx3lnx4 | -.0008239 .0002539 -3.24 0.001 -.0013215 -.0003262 lnx3lnx5 | .0007864 .0002525 3.11 0.002 .0002915 .0012814 lnx3t | .0000393 .0000118 3.33 0.001 .0000162 .0000625 lnx4lnx5 | -.063212 .007843 -8.06 0.000 -.0785839 -.04784 lnx4t | -.0028864 .0003574 -8.08 0.000 -.0035868 -.002186 lnx5t | .002875 .0003556 8.08 0.000 .002178 .003572 _cons | .8317727 .0163096 51.00 0.000 .7998064 .863739 -------------+---------------------------------------------------------------- usigmas | t | -2.543044 .0902784 -28.17 0.000 -2.719986 -2.366101 _cons | -4.848508 . . . . . -------------+---------------------------------------------------------------- vsigmas | _cons | -15.37606 .0874759 -175.77 0.000 -15.54751 -15.20461 ------------------------------------------------------------------------------ convergence not achieved r(430); . sf_predict, bc(bc2_h) jlms(jlms2_h) marginal ....
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