Table 11 Hypothesis testing for SPF models
Null hypothesis \({H}_{0}\) | Ļ2 statistics | Degree of freedom | Ļ2 critical | Decision |
|---|---|---|---|---|
Unmatched conventional | ||||
CobbāDouglas (CD) is appropriate:\({\beta }_{ij}=0\) | ||||
Members | 10.23 | 11 | 19.05 | Cannot reject H0: CD is adequate |
Nonmembers | 17.54 | 11 | 19.05 | Cannot reject H0: CD is adequate |
Matched conventional | ||||
Members | 11.02 | 11 | 19.05 | Cannot reject H0: CD is adequate |
Nonmembers | 17.54 | 11 | 19.05 | Cannot reject H0: CD is adequate |
Homogenous technology across channels | ||||
Unmatched conventional | 16.86 | 3 | 7.05 | Reject H0: No homogenous technology |
Matched conventional | 13.24 | 3 | 7.05 | Reject H0: No homogenous technology |
Unmatched conventional | z statistics | p value of z | Ā | Ā |
No technical efficiency effects: Ī³ā=ā0 | ||||
Members | 3.59 | 0.00 | Ā | Reject H0: Frontier not OLS |
Nonmembers | 7.31 | 0.00 | Ā | Reject H0: Frontier not OLS |
Matched conventional | ||||
Members | 3.66 | 0.00 | Ā | Reject H0: Frontier not OLS |
Nonmembers | 7.31 | 0.00 | Ā | Reject H0: Frontier not OLS |