Obwona, Marios B
Two major criticisms have been levelled against the statistical approach to
measuring production efficiencies. First, the sampling distributional assumptions
artificially imposed on the one sided-error term used to characterize inefficiency
are somewhat restrictive. Moreover, alternative distributional assumptions can
lead to substantially different results for the estimated technical efficiencies; making
it difficult to provide an economic and practical justification of the choice of
Items in Open Research are protected by copyright, with all rights reserved, unless otherwise indicated.