Frontier Production Functions and Technical Efficiency Measures

KALIAPPA P. KALIRAJAN · R. T. Shand

249 citations0/0 files storedJournal of Economic Surveys

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Efficiency Analysis Using DEA Agricultural economics and policies Economic Growth and Productivity

Abstract

The concept of technical efficiency is central to measuring the firm performance. The measurement of technical efficiency has proved difficult and complex, and the literature provides a range of methodologies. This paper reviews the various methodologies for measuring technical efficiency and offers a comparison between established methods of measurements. The discussion is literary with less mathematical jargons and equations. The objective of this paper is not to be exhaustive, but to be up‐to‐date and to provide a significant discussion on some of the core methods of measuring technical efficiency.

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References

1978Measuring the efficiency of decision making units 1978Specification Tests in Econometrics 1957The Measurement of Productive Efficiency 1977Formulation and estimation of stochastic frontier production function models 2003Analysis of Panel Data 1977Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error 1982On the estimation of technical inefficiency in the stochastic frontier production function model 1992Frontier production functions, technical efficiency and panel data: With application to paddy farmers in India

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