Production frontiers and efficiency measures : concepts and applications
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 a...[Show more]
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