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“Efficiency Flooding”: Black-Box Frontiers and Policy Implications

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Author Info
Sauer, J.F.

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Abstract

This research aims to comtribute to the discussion on the importance of theoretically consistent modelling for stochastic efficiency analysis. The robustness of policy suggestions based on inferences from efficiency measures crucially depends on theoretically well-founded estimates. The theoretical consistency of recently published technical efficiency estimates for different sectors and countries is critically reviewed. The results confirm the need for a posteriori checking the regularity of the estimated frontier by the researcher and, if necessary, the a priori imposition of the theoretical requirements.

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Publisher Info
Article provided by Euro-American Association of Economic Development in its journal International Journal of Applied Econometrics and Quantitative Studies .

Volume (Year): 2 (2005)
Issue (Month): 1 ()
Pages: 17-52
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Handle: RePEc:eaa:ijaeqs:v:2:y2005:i:1_2

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Related research
Keywords: Efficiency Analysis; Functional Form; Mathematical Modelling;

Find related papers by JEL classification:
C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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