Stochastic Frontier Production Model With Undesirable Outputs: An Application To An HIV Immunology Model

In the text, the stochastic frontier production model is applied to the treatment strategy of anti-HIV immunology model, as is significant practically in the anti-HIV treatment. The stochastic frontier method is utilized to describe the drug treatment strategies. Moreover, the optimal treatment strategy of anti-HIV immunology model is solved by the relative efficiency of DMUs. This text extends the stochastic frontier production theory to the case of multiple outputs and setups the measurement of efficiency on it using the DEA and production theory. We further apply this method to construct the stochastic frontier production model with undesirable outputs. Finally, the model is used in an HIV immunology model and the efficient drug treatment strategies are then explored. All the models are estimated using the Maximum Likelihood Estimation method. Bian and Hem investigated the efficiency and superiority of such a model using different methods, and both of their models are based on deterministic data. Stochastic errors are considered in this model, however, which is an advantage over other efficiency models. Some of our conclusions agree with those published in related papers.