The stochastic frontier analysis technique in measuring the technical and economic efficiency of hospital diagnostic laboratories: a case study in Iran

Table 3 Estimation of stochastic frontier production function (SFA) parameters from the maximum likelihood method (ML)

Variable	Coefficient		Standard-error	t-ratio
Intercept	β₀	1.27	0.039	32.6
log(number of admissions)	β₁	0.014	0.005	2.72
log(tools and equipment cost/ salaries of all experts)	β₂	0.31	0.017	18.4
log(tools and equipment cost/ salaries of all specialists)	β₃	0.33	0.016	21.17
log(cost of materials and solutions/ salaries of all specialists)	β₄	0.092	0.012	7.62
Sigma-square	σ²	0.003	0.0007	4.2
Gamma	γ	0.99	0.000004	266,875
log likelihood	47.02
LR test	7.03

ISSN: 1478-7547