Abstract
In 1957, Farrell proposed to measure technical (in)efficiency as the realised deviation from a frontier isoquant. Since then, the research has developed several methods to derive the production frontier and it has also extended its scope in applying frontier techniques to the measurement of total factor productivity. In this paper, I present the core techniques for the measurement of technical efficiency and productivity based on the notion of frontier and introduce the more recent technological advances in the field.
| Original language | English |
|---|---|
| Pages (from-to) | 71-97 |
| Number of pages | 27 |
| Journal | Economic Issues |
| Volume | 8 |
| Issue number | 2 |
| Publication status | Published - Sept 2003 |
Keywords
- measure technical (in)efficiency
- frontier isoquant
- production frontier
- frontier techniques
- measurement of total factor productivity
- measurement of technical efficiency and productivity