Stochastic metafrontiers
Christine Amsler,
Christopher J. O’Donnell and
Peter Schmidt
Authors registered in the RePEc Author Service: Christopher John O'Donnell
Econometric Reviews, 2017, vol. 36, issue 6-9, 1007-1020
Abstract:
We consider the case of production units arranged into a number of groups. All units within a group choose output–input combinations from the same production possibilities set that is represented by a stochastic frontier model. The metafrontier is the envelope of the group-specific frontiers. We are interested in the metafrontier distance, which is the amount by which the group-specific frontier lies below the metafrontier.Previous work has measured the metafrontier distance using the deterministic portion of the frontier. In a stochastic frontier model, this is not appropriate. We show how to evaluate the metafrontier distance, and we demonstrate the empirical relevance of this issue.
Date: 2017
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Citations: View citations in EconPapers (12)
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Persistent link: https://EconPapers.repec.org/RePEc:taf:emetrv:v:36:y:2017:i:6-9:p:1007-1020
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DOI: 10.1080/07474938.2017.1308345
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